In This Article:
-
Revenue: Total revenue for H1 2024 was EUR50.8 million.
-
Digital Revenue Growth: Digital revenue grew by 10.9%, or 12.8% excluding divested activities.
-
Gross Margin: Digital business gross margin increased from 53% to 67%.
-
Operating Cash Flow: Positive operating cash flow of EUR5.5 million.
-
OpEx Reduction: Operating expenses reduced by 7% year-on-year.
-
CapEx: Capital expenditure maintained at EUR16 million annually, with EUR8.2 million spent in H1 2024.
-
Customer Base: Customer base exceeded 1.3 million paying customers, with over 100,000 new customers in the last 12 months.
-
EBITDA: EBITDA was neutral for H1 2024.
-
Cash Position: Cash position at the end of June 2024 was EUR18.7 million.
-
Recurring Revenue: Recurring digital service revenue was 91.2% of total digital revenue.
-
ARPU: Average Revenue Per User (ARPU) was EUR5.7 per month.
Release Date: August 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Unifiedpost Group SA (XBRU:UPG) reported a steady growth of 12.8% in its core business, indicating a positive trajectory despite the digital transformation challenges.
-
The company successfully closed the FitekIN/ONEA divestment and signed a strategic partnership with PostNord, providing access to the Nordic market.
-
Unifiedpost Group SA (XBRU:UPG) reduced its operational expenses by 7%, showcasing effective cost management strategies.
-
The company has a growing customer base, now reaching 1.3 million customers, which reflects strong market penetration.
-
Unifiedpost Group SA (XBRU:UPG) received approval from the National Bank of Belgium to fund invoices without bank intervention, enhancing its financial service offerings.
Negative Points
-
The divestment of 21 Grams and other strategic assets may impact short-term revenue streams, as these are classified as discontinued operations.
-
The company faces challenges with IFRS complexities, which complicate financial reporting and understanding.
-
Unifiedpost Group SA (XBRU:UPG) is still in the process of optimizing its cash availability, with a current cash position of EUR18.7 million, which may be a concern for liquidity.
-
The company is dependent on upcoming regulations for significant market growth, which introduces uncertainty in timing and execution.
-
There are ongoing costs associated with divestments and restructuring, including non-recurring costs of EUR500,000, which could affect profitability.
Q & A Highlights
Q: Can you provide any update on any potential impairments that have had to be made? A: Koen De Brabander, CFO, stated that after conducting an extensive exercise, no impairments were necessary as of June 2024. The divestments announced should prevent any impairments for the year.