- 28% increase in sales against Q1-Q3 of the previous year
- EBIT about the same as the comparable value of the previous year
- Profit for the period increased strongly
- Despite acquisitions and dividend payment: Net credit of EUR 17.6 million
- New projects won along with solid new business pipeline
- Focus on integration of the transportation business taken over by Schneider Electric
“We are well on course to implementing our 2020 strategy. The Group is growing both organically as well as through acquisitions. In doing so, the company’s profitability with toll solutions supports expansion into the young business area of Intelligent Mobility Solutions”, says Georg Kapsch, CEO Kapsch TrafficCom.
|Unless otherwise stated, all values in EUR million
| EBIT margin
|Profit for the period
|Profit for the period attributable to equity holders
Vienna, February 22, 2017 – Kapsch TrafficCom continues growth in the first three quarters of the 2016/17 fiscal year. Turnover increased against the comparison period in the previous year by EUR 104.6 million (+28%) to EUR 483.8 million, whereas the transportation division acquired from Schneider Electric on April 1, 2016 (Kapsch TrafficCom Transportation; KTT) contributed EUR 80.7 million to total revenues. The business with toll solutions summarized in the segment “Electronic Toll Collection” generated about three quarters of the Group’s turnover. The "Intelligent Mobility Solutions" segment accounted for the remainder.
The operative result (EBIT) of the first nine months of the fiscal year, at EUR 43.0 million, was at the same level as the previous year. The EBIT margin dropped by 2.5 percentage points to 8.9%. Important reasons for this are the still negative profit contribution of Kapsch TrafficCom Transportation and the integration costs associated with this acquisition. It is currently anticipated that the integration process will largely be completed over the course of this fiscal year. However, we will likely also experience a number of follow-on effects next year. In any case, we should then start to see the synergies resulting from the acquisition being reflected in our results.
Due to lower foreign exchange losses the financial result in Q1-Q3 2016/17 was better than in the same period of the previous year, which even comprised a positive one-off effect. It was therefore possible to record strong growth (+16%) in the profit for the period to EUR 29.4 million.
Through the acquisition of the remaining 48% share in the Czech Kapsch Telematic Services (the operating company of the toll project in the Czech Republic), the profit for the period attributable to equity holders increased by 41%. To the same extent, the earnings per share grew to EUR 2.31 (Q1-Q3 2015/16: EUR 1.64).
The capital resources of Kapsch TrafficCom continue to be extremely sound. In spite of the dividend payment of a total of EUR 19.5 million as well as payments in connection with the different acquisitions – most recently for a conditional adjustment of the purchase price of Kapsch TrafficCom Transportation of EUR 5 million – Kapsch TrafficCom had a net credit of EUR 17.6 million as of December 31, 2016.
On the sales side, Kapsch TrafficCom achieved a range of notable successes in the first nine months of this fiscal year. In the Czech Republic, the contract on the operation of the nationwide toll system for road haulage was extended by up to three more years. In Austria, Kapsch TrafficCom was awarded the contract for the installation and technical operation of the nationwide toll system for vehicles over 3.5 tons. After acceptance of the new system, Kapsch TrafficCom will perform the technical operation for a duration of ten years, whereby there is the possibility to extend by up to five years.
Kapsch TrafficCom also achieved numerous successes outside Europe. North America is certainly the most important growth market for the Group. Besides some larger projects, an increasing number of smaller orders are to be accounted for there. Kapsch TrafficCom has been active in North America for many years and has developed the market with acquisitions and organic initiatives. In this region, the company employs about 700 employees and possesses its own production site for components.
You can find the report for Q1-Q3 2016/17 at: www.kapsch.net/ktc/investor_relations/reports
The results for the 2016/17 fiscal year are expected to be released on June 20, 2017.
Kapsch TrafficCom is a provider of intelligent transportation systems (ITS) in the segments of toll collection, city access control and parking space management, traffic management, traffic monitoring, utility vehicle monitoring, electronic vehicle registration and V2X cooperative systems. The end-to-end solutions of Kapsch TrafficCom cover the entire value creation chain of its customers, from components and design to the installation and operation of systems, all from a single source. The core business comprises the development, installation and operation of electronic toll collection and traffic management systems.
Reference projects in more than 50 countries on all continents have made Kapsch TrafficCom a globally recognized ITS provider. As part of the Kapsch Group, an Austrian family-owned technology group founded in 1892, Kapsch TrafficCom is headquartered in Vienna, Austria, and has subsidiaries and branches in 33 countries. It has also been listed since 2007 on the Vienna Stock Exchange (KTCG) and earned revenues of EUR 526 million in the 2015/16 fiscal year. The company employs over 4,600 employees worldwide.