Kapsch TrafficCom – Results for the first three quarters of 2022/23.

Highlights.

• Revenues increased by 9% to EUR 414 million.
• Special effect enabled EBIT to increase by 67%.
• Continued focus on costs and liquidity.
• Outlook for financial year 2022/23: Slight increase in revenues and improvement in profitability.

"We were awarded several attractive new projects in the past three quarters and the project pipeline is also good. In addition, we were able to consistently increase revenues and significantly improve earnings. We have thus confirmed the turnaround, even if we have not yet reached our goal. Considering the challenging economic conditions, we will therefore continue to keep a focus on our costs and liquidity.", says Georg Kapsch, CEO of Kapsch TrafficCom.

Vienna, February 22, 2023 – Kapsch TrafficCom was able to increase revenues by 9% from EUR 379 million in the previous year to EUR 414 million in the first three quarters of the financial year 2022/23. At EUR 10 million, the operating result (EBIT) was significantly higher than the previous year’s figure of EUR 6 million. This improvement was primarily driven by the completion of the sale of the Spanish public transport business, which generated other operating income of just under EUR 6 million in the third quarter.

Nevertheless, the overall rising costs significantly weakened the operating result (EBIT). Particularly the increase in personnel costs since the first quarter had a negative impact. In addition, the situation in the supply chain remained tense and restricted delivery capability.

The financial result and result from associated companies amounted to EUR -6 million (previous year: EUR ‑5 million). The result for the period attributable to equity holders amounted to EUR 2 million, after EUR -2 million in the previous year, which corresponds to earnings per share of EUR 0.18, after EUR -0.19 in the previous year.

At EUR 2 million, the free cash flow in the past three quarters was significantly lower than the previous year (EUR 9 million). The main reason for this was the negative change in net working capital, while the special effect from the sale in Spain had a positive impact. The balance sheet figures mainly show a reclassification from non-current to current liabilities due to maturities. The equity ratio of 14% as of December 31, 2022 was lower than the previous financial year-end figure of 15%, primarily due to exchange rate differences. Net debt increased by around 10% to EUR 175 million compared to March 31, 2022, resulting in a gearing ratio of 249%.

Results by segment in the first three quarters of 2022/23.

Growth in the past nine months was driven by the tolling segment, which generated 73% of total revenues in the reporting period. The traffic management segment accounted for 27%. In the EMEA region (Europe, Middle East, Africa), business remained moderate and the share of total revenues declined to 48%. In contrast, Kapsch TrafficCom recorded strong growth in the Americas region (North, Central and South America), with the share of revenues increasing to 46%; likewise in the APAC region (Asia-Pacific) with an increase to 6%.

Tolling segment.

Revenues in the tolling segment increased by 11% to EUR 304 million, primarily due to the good implementation and components business. The strong growth in the Americas region led to this region accounting for the largest revenue contribution of 48% in the reporting period. In the EMEA region, revenues declined to a 45% share of revenues after the completion of the nationwide tolling project in Poland; in the APAC region, the share of revenues increased to 6% as a result of the huge growth.

The EBIT of the segment, however, decreased to EUR -2 million (previous year: EUR -1 million), primarily due to the increase in personnel costs, the EBIT margin amounted to -1%.

Traffic management segment.

In the traffic management segment, revenues increased by 5% to EUR 111 million. While the implementation business declined, higher operating revenues made this growth possible. In regional terms, despite a slight decline, the EMEA region made the largest contribution to revenues with 57%, the Americas region contributed 39% and the APAC region 4%.

The EBIT of the segment increased significantly to EUR 12 million (previous year: EUR 7 million), primarily in connection with the aforementioned special effect from Spain. The EBIT margin thus increased to 11%.

 
Outlook.

For the full financial year 2022/23, the Executive Board expects a slight increase in revenues based on current developments. Profitability should show an improvement compared to the previous year, although macroeconomic developments continue to harbor uncertainties that may affect the results.

On the one hand, the focus remains on new business. On the other hand, Kapsch TrafficCom is affected by the huge global inflation rates in all areas. The measures taken regarding costs and liquidity will therefore be continued in a focused manner to remain flexible and achieve the desired results.
 

The report on the first three quarters of 2022/23 as well as further materials on the results are scheduled to be available today, from 7:35 a.m. (CET), at:

 

Kapsch TrafficCom is a globally renowned provider of transportation solutions for sustainable mobility with successful projects in more than 50 countries. Innovative solutions in the application fields of tolling, tolling services, traffic management and demand management contribute to a healthy world without congestion.

With one-stop-shop-solutions, the company covers the entire value chain of customers, from components to design and implementation to the operation of systems.

Kapsch TrafficCom, headquartered in Vienna, has subsidiaries and branches in more than 25 countries and is listed in the Prime Market segment of the Vienna Stock Exchange (ticker symbol: KTCG). In its 2021/22 financial year, 4,220 employees generated revenues of about EUR 520 million.
 

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