Fastned 1H24 Results, Gross profit in line, but expansion costs increase

The sales and gross profit came close to our expectations, but 1H24 EBITDA fell short vs. our expectations at EUR 3.3m vs. 8.0m expected. The EPS loss amounted to -0.59 and also missed our -0.43 expectation. As Fastned is opening more regions, it has to invest in new areas with low initial scale. The network operating expenses rose 68% YoY while sales rose only 45%. The financial costs were in line with expectations. The share price has been weak recently as the EV adoption curve stalled. However, EV-charging volumes continue to increase and Fastned is expanding its network at a steady pace on track for its 2030 targets. While profitability fell short, the company is closing in on positive operational cashflow to start self-funding part of its growth.