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init innovation in traffic systems SE: Following record revenues, init expects further double-digit growth in 2020

EQS Group Wednesday, 25 March 2020
DGAP-News: init innovation in traffic systems SE / Key word(s): Annual Results
25.03.2020 / 15:10
The issuer is solely responsible for the content of this announcement.*- Revenue target set at EUR 180m (2019: EUR 156.5m), operating earnings (EBIT) should reach EUR 18-20m (2019: EUR 16.2m)
- Incoming orders planned at EUR 180-190m (2019: EUR 160.2m)
- Dividend of EUR 0.40 will be proposed to the Annual General Meeting*

Following an excellent 2019, init innovation in traffic systems SE (ISIN DE 0005759807) expects double-digit growth in the current financial year. Revenues (including pending acquisitions) are expected to rise by around 15 per cent to EUR 180m. Accordingly, EBIT is expected to increase to EUR 18-20m (2019: EUR 16.2m). The international leading provider of planning, dispatching, telematics and ticketing solutions for buses and trains is expecting a further increase in incoming orders to around EUR 180-190m for 2020 (2019: EUR 160.2m), announced the Managing Board today at the annual results conference.

"Our assessment of the business performance of the init group in 2020 is shaped by a number of offsetting factors. The current global economic risks are counterbalanced by favourable sector trends. We expect that investments in infrastructure, especially in the US, will continue to rise. But also in Germany as well as in Europe we will benefit from investments in the transport infrastructure due to climate policy. Therefore, in our overall outlook, we anticipate a significant increase on the revenues side", stated the Managing Board in its management report. Until now, there have not been any effects on init's budgeted revenues, earnings and incoming orders from the coronavirus crisis. However, this may change suddenly due to the dynamic development.

*Digitisation creates new growth potential*

The advancing digitisation, one of init's core competencies since the foundation of the company, is creating new growth potential due to new services such as the possibility to combine personalised travel packages via apps ("Mobility as a Service"). On the other hand, new technological developments and trends like electromobility also promote demand for platform solutions and efficient system architecture, such as those offered by init.

Particularly in heavily industrialised countries, investments in the expansion of public transport systems should increase in the next few years due to climate policy, as already announced for Germany from 2020 onwards. As integrated technology provider, init anticipates a range of new opportunities from the investments due to the modified climate policy. "Our company is equipped to exploit these opportunities through new developments and acquisitions", said the Managing Board in its outlook.

Considering the pending acquisitions, it therefore set the target for group revenues 2020 at around EUR 180m. With order backlog of EUR 151.8m (excluding pending acquisitions), they considered this to be a very good base for further sustainable growth. The target range for incoming orders in 2020 is between EUR 180-190m (including new acquisitions).

The Managing Board regards the business performance in 2019 as very positive overall. The init group achieved a new revenue record of EUR 156.5m (previous year: EUR 135.7m). This translates into growth of EUR 20.8m or 15.3 per cent and therefore stands above the long-term average. In addition to successful completion of projects, the main reasons for this were the increase in revenues from maintenance and higher demand in follow-up orders.

At EUR 16.2m, the EBIT was slightly higher than the revised forecast during the year of EUR 15m (previous year: EUR 6.4m). Besides the positive development in revenue, this reflects the measures implemented to improve efficiency and optimise processes. The EBIT margin in the group increased significantly to 10.4 per cent, it therefore reached an important milestone (previous year: 4.7 per cent). Operating cash flow 2019 also increased significantly to EUR 21.1m (previous year: EUR 12.9m).

At EUR 11.3m, consolidated net profit improved on the previous year by EUR 8.9m (previous year: EUR 2.4m). As a result, earnings per share multiplied to EUR 1.13 (previous year: EUR 0.24). The Managing Board would like to share this success with the shareholders by increasing the dividend to EUR 0.40 (previous year: EUR 0.12).

*Leading position in smart ticketing should be expanded further*

The init Managing Board is looking forward to the financial year 2020 with "optimism and confidence", placing high hopes in smart ticketing in particular. Recently, the Board of Directors of the Metropolitan Transit Authority of Harris County (METRO), the public local transport provider for the region around Houston in Texas (USA), decided to commission init to deliver an ID-based fare management system. The corresponding agreement with a contract value of well over USD 30m is expected to be signed in the second quarter of 2020.

"This proves the leading position in this area that we now also enjoy on the competitive North American market. We want to assert and expand this position with further innovative products. The next step will be for passengers to purchase and pay for their tickets by showing their hands", announced the init Managing Board.

The full Annual Report 2019 of init innovation in traffic systems SE is available in the Internet under Investor Relations > Financial Reports.


*Further information:*

The health and welfare of our shareholders and guests as well as of our employees is our top priority, and this also applies to our Annual General Meeting 2020. Based on the information currently available about the coronavirus, the date of this year's Annual General Meeting can only be announced at short notice.
 

Contact:
Person making the notification:
Simone Fritz
Investor Relations
[email protected] --------------------

25.03.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de --------------------

Language: English
Company: init innovation in traffic systems SE
Käppelestraße 4-10
76131 Karlsruhe
Germany
Phone: +49 (0)721 6100 0
Fax: +49 (0)721 6100 399
E-mail: [email protected]
Internet: www.initse.com
ISIN: DE0005759807
WKN: 575980
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1007013
End of News DGAP News Service
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