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(Sharecast News) - Commercial road transportation payments and mobility technology company WAG Payment Solutions reported a robust performance in the March quarter on Thursday, with net revenue jumping 31% to €68.4m, driven by sustained organic growth and contributions from the Inelo acquisition.
The FTSE 250 company, which trades as Eurowag, said organic net revenue expanded by 10% to €55.2m, meeting management expectations.
That growth was fuelled by a strong performance in payment solutions organic revenues, which grew 8.2%, supported by a 10.8% increase in active trucks and rising toll revenue, albeit offset by macroeconomic challenges and reduced market kilometres.
Additionally, mobility solutions organic revenues increased 14.7%, reflecting effective cross-selling efforts.
Operationally, Eurowag said it continued to perform well, with revenue growth bolstered by strong non-financial KPI performance.
The average number of payment solutions active customers and trucks experienced year-on-year growth of 7.8% and 10.8%, respectively.
It said its sales teams was focussed on new acquisitions across markets to build a customer base supporting the transition to a greater subscription model.
Eurowag implemented the next phase of its new ERP system in January, enhancing operational efficiency and scalability.
The firm also expanded acceptance points in Poland, Germany, and Spain, totaling about 13,500 across Europe, and started operations in Croatia, further broadening its geographical reach.
Additionally, mobile payments were introduced to around 600 acceptance points in Germany and Poland, reaching around 1,400 across Europe.
The board also noted the successful launch of European Electric Toll Services in Slovakia, with nearly 2,000 new registered vehicles in the first week.
On the merger and acquisition front, Eurowag announced the restructuring of the option for the remaining 19% equity shareholding in FireTMS.
Eurowag said it would acquire 7.6% for €3.4m, paid in two equal instalments in April and July.
The final 11.4% equity shareholding remained subject to an option mechanism exercisable in the first half of 2026, with the price contingent on certain financial and KPI targets met by FireTMS.
Looking ahead, Eurowag reaffirmed its near and medium-term guidance, with 2024 adjusted EBITDA margins expected to align with 2023 and grow over the medium-term.
The net debt-to-adjusted EBITDA ratio was anticipated to be moderately above the target range in 2024, with a priority to return within the range by 2025.
"We delivered double-digit organic revenue growth in the first quarter despite the continued macroeconomic headwinds across Europe," said chief executive officer and founder Martin Vohánka.
"Our sales teams continue to focus on cross-selling our products across our customer base as well as acquiring new customers.
"The development of our digital platform continues at pace, as we prepare for the soft launch in the fourth quarter this year."
Vohánka said the platform would accelerate Eurowag's business growth and drive greater efficiencies for customers.
"We are encouraged by the solid progress demonstrated at the start of the year and re-iterate our near and medium-term guidance."
At 0851 BST, shares in WAG Payment Solutions were up 1.23% at 65.8p.
Reporting by Josh White for Sharecast.com.
