In This Article:
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Unifiedpost Group SA (XBRU:UPG) achieved all strategic priorities set during the April 2024 Capital Market Day.
-
The company successfully derisked its balance sheet, significantly reducing net debt to EUR29.5 million.
-
Digital services gross margin improved to 60%, indicating better profitability in core operations.
-
Subscription revenue grew by approximately 10%, with expectations for further acceleration due to compliance deadlines.
-
Unifiedpost Group SA received EcoVadis recognition for its ESG efforts, highlighting its commitment to sustainability.
Negative Points
-
EBITDA remained negative at EUR9.2 million, despite a 17% improvement over the year.
-
The company experienced a decline in traditional communication services, partially due to divestments and migration to digital.
-
The e-Reporting business declined due to the volatile nature of license sales.
-
The company is still impacted by nonrecurring costs of at least EUR700,000.
-
There is a delay in the divestment of 21 Grams due to pending approval from the Swedish anticompetition authority.
Q & A Highlights
Q: How much of the EUR80 million revenue in FY24 is from activities that are no longer part of the group today? A: Approximately EUR1.7 million of revenues from Fitekin/ONEA, which was part of our digital business, and approximately EUR500,000 from the Serbian print activity, both of which are no longer part of the group.
Q: Can you comment on the regulatory readiness in Belgium? A: We are fully ready to address the market in Belgium. The sales activity has increased significantly, and we are prepared to support the market with our expertise in e-Invoicing. The acceleration of the market is expected to happen in September 2025.
Q: How do you plan to increase subscriptions in FY 2025? Is 25% realistic? A: Yes, it is realistic. We have 1.2 million companies in Belgium that need to be ready for the e-Invoicing mandate by January 1, 2026. Additionally, we plan to upsell our payment solutions to existing customers, which will contribute to subscription growth.
Q: What is the repayment schedule for the outstanding loan principal balance of '25? A: We repaid EUR75 million of the EUR100 million principal amount to Francisco Partners in December. The remaining balance is linked to divestment activities, particularly the 21 Grams project, which is pending approval from the Swedish anticompetition authority.