init maintains stable growth in uncertain times

• Quarterly revenues show double-digit growth despite global supply chain disruptions
• EBIT at previous year's level
• New growth potential through energy-saving software and solutions for e-mobility in public transport

init innovation in traffic systems SE (ISIN DE 0005759807) maintains stable growth despite general economic uncertainty. According to figures now available for the third quarter, the digitalisation specialist reached its targets. For the first nine months of the 2022 financial year, there was an increase of around 5 per cent to EUR 131.1m (2021: EUR 125.1m). Despite a significant rise in material and personnel costs, earnings before interest and taxes (EBIT) remained at the previous year's level of EUR 10.2m (EUR 10.5). "We have come through the COVID and supply chain crises well so far, thanks to a foresighted procurement policy and our flexible structures. The fourth quarter should bring another upturn, so that we can confirm our previous growth forecast for the year as a whole," said the init Managing Board in its recent assessment.

In the third quarter of 2022, the leading international provider of integrated planning, dispatching, telematics and ticketing solutions for buses and trains made good progress in both its product and project businesses. With double-digit growth of 25 per cent, revenues were up on the previous year's figure at EUR 50.5m (Q3 2021: EUR 40.4m). This growth also led to a strong increase in EBIT of EUR 7.3m, compared to EUR 2.9m in the first half of the year.

The broad customer base of over 1,100 transport companies worldwide and in different currency areas also continued to have a positive effect, making it possible to cope with short-term fluctuations in regional markets and considerable cost increases in procurement.

Incoming orders and order backlog at high levels

In the third quarter, init acquired new orders with a total volume of EUR 33.8m (30/09/2021: EUR 37.8m). The cumulative view as of 30 September 2022 thus shows an increased order intake totalling EUR 142.2m compared to the previous year's value (30/09/2021: EUR 138.2m). At around EUR 159m, the order backlog as of 30 September 2022 also remains significantly higher than the previous year's level (30/09/2021: EUR143m).

During init's financial year cycle, the last quarter is usually the strongest in terms of revenues and earnings. The Managing Board therefore continues to assume that it will be able to achieve the previously announced revenues and earnings targets for 2022 which detail revenues of between EUR 190m and 200m and EBIT of between EUR 15m and 20m.

"So far, we have been able to cope well with the challenges posed by the COVID crisis and the effects of the war in Ukraine. Provided there are no further escalations in the supply of materials and energy or on the financing side with our customers, the transport companies, we will be able to continue on our growth course," said init’s Managing Board members.

The medium and long-term growth drivers in the market for init solutions remain intact. A growing number of public transport digitalisation and decarbonisation projects are being initiated worldwide. In particular, the conversion of vehicle fleets to electric mobility, which is already underway and will accelerate in the coming years, is an important growth area for init.

With init’s integrated software suite eMOBILE, all processes associated with electromobility can be optimised for transport companies. Demand is expected to increase in this area.

Transport companies can save millions with init software

The Managing Board already sees short-term demand in init’s software products, which aim to save energy and resources at the transport companies. A huge increase in energy costs is forcing many transportation companies to put their processes to the test and to optimise them. This includes trip, vehicle and duty scheduling as well as the cost-optimised charging of e-buses, booking and control solutions for on-demand transport and assistance systems for safe and energy-efficient driving.

"With our software, significant savings can be made in all these areas. Transport companies can already improve their economic situation in the short term and overcome the future requirements of the transformation in transport," emphasises init’s Managing Board member.

The complete quarterly statement will be available on the init from 10 November 2022.