Corporate release
Kapsch TrafficCom – Results for the first half of 2019/20.
Highlights
- Revenue continues to grow in both segments.
- The Americas region is growing very dynamically.
- Investments in growth (cost of materials and personnel expenses) are having a negative impact on profitability.
- EBIT includes
one-off effects in connection with the termination of the German infrastructure charge and the toll project in the Czech Republic.
“As in past financial years, we must also describe the first half of this year as mixed. While revenues were thoroughly positive, profitability was disappointing. If we take a closer look, there are good reasons for the decline in profits, so I am not worried at all, although I am not satisfied either“, says Georg Kapsch, CEO of Kapsch TrafficCom.
Unless otherwise stated, all values in EUR million | H1 2018/19 | H1 2019/20 | +/- |
---|---|---|---|
Revenues | 335.8 | 359.2 | +7.0% |
EBIT | 17.8 | 8.8 | -50.6% |
EBIT margin | 5.3% | 2.4% | -2.9%p |
Profit for the period | 8.4 | 2.3 | -72.1% |
Earnings per share (EUR) | 0.70 | 0.18 | -74.8% |
Vienna, November 20, 2019 – The final earnings for the first half of the 2019/20 financial year published today by Kapsch TrafficCom hardly deviate from the anticipated revenues and operating result (EBIT) announced on October 14, 2019.
We were able to continue positive revenue development: Revenues rose by 7.0% to
EBIT amounted to
- In connection with the German infrastructure charge:
Due to early termination the company had to write off contract initiation costs ofEUR 4.2 million .
- In connection with the toll project in the Czech Republic:
The contract ends in the third quarter of the financial year. Since the employees will not be hired en bloc by the designated operator, the company has set up a provision ofEUR 0.9 million for severance payments.
Excluding these
The main reasons for the lower profitability are investments in future growth, namely in the form of:
- Cost of material.
The performance of the installation business – particularly in the ETC segment – in the first half of 2019/20 was very positive, although it required relatively high material investments (i.e. higher costs of materials). The newly installed systems must, however, be operated later on, which offers additional sales revenue potential for Kapsch TrafficCom.
- Personnel expenses.
Since business in North America has been growing rapidly, the company needed to hire actively in order to take full advantage of the available market potential. In the first half of the year, the number of colleagues in the USA (excluding the Smart Parking subsidiary Streetline) rose by around 70 to a total of 714.
The financial result for the first half of the year was
The profit for the period amounted to
The further increase in net working capital in the first half of 2019/20 is an important indicator of the sustained high dynamism in the area of implementation projects – in other words, a fundamentally positive development. The free cash flow of
Segment results.
In the first half of 2019/20, 78.3% of revenue was generated by the ETC segment and 21.7% by the IMS segment. 57.5% of revenue was generated in the Europe, Middle East, and Africa (EMEA) region, 38.2% in the Americas region (North, Central, and South America), and 4.3% in the Asia-Pacific (APAC) region.
ETC (Electronic toll collection). Unless otherwise stated, all values in EUR million |
H1 2018/19 | H1 2019/20 | +/- |
---|---|---|---|
Revenues | 262.1 | 281.2 | +7.3% |
EBIT | 24.8 | 17.5 | -29.5% |
EBIT margin | 9.5% | 6.2% | -3.2%p |
In the first half of 2019/20, ETC revenue reached
ETC EBIT was
IMS (Intelligent mobility solutions). Unless otherwise stated, all values in EUR million |
H1 2018/19 | H1 2019/20 | +/- |
---|---|---|---|
Revenues | 73.7 | 78.1 | +5.9% |
EBIT | -7.01 | -8.7 | -23.9% |
EBIT margin | -9.5% | -11.1% | -1.6%p |
In the first half of 2019/20, segment revenue reached
The IMS EBIT was
Once again, the United Kingdom’s pending withdrawal from the EU (Brexit) should not have a significant impact on Kapsch TrafficCom's results. The company’s revenue there is in the single-digit millions.
The report of the first half of 2019/20 as well as further materials will be available at www.kapsch.net/ktc/ir from today at 7:35 am. (CET)
Kapsch TrafficCom is a provider of intelligent transportation systems in the fields of tolling, traffic management, smart urban mobility, traffic safety and security, and connected vehicles. As a
Kapsch TrafficCom is an internationally renowned provider of intelligent transportation systems thanks to the many projects it has brought to successful fruition in more than 50 countries around the globe. As part of the Kapsch Group, Kapsch TrafficCom with headquarters in Vienna, has subsidiaries and branches in more than 30 countries. It has been listed in the Prime Market of the Vienna Stock Exchange since 2007 (ticker symbol: KTCG). Kapsch TrafficCom‘s about 5,000 employees generated revenues of
Press contact:
Executive Vice President Marketing & Communications
Kapsch Aktiengesellschaft
Am Europlatz 2, 1120 Vienna, Austria
P +43 50 811 1710
carolin.treichl@kapsch.net
Public Relations
Kapsch Aktiengesellschaft
Am Europlatz 2, 1120 Vienna, Austria
P +43 50 811 1705
markus.karner@kapsch.net
Investor contact:
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2, 1120 Vienna, Austria
P +43 50 811 1122
ir.kapschtraffic@kapsch.net