2023-08-28 19:46:17
Closing price Casablanca Stock Exchange – 00:00:00 25/08/2023 Varia. 5d. Varies. Jan 1 MAD5945.00 +0.35% -0.59% -8.54%
COMMUNICATION
INDICATORS
2023
FINANCIAL
DU 2EME TRIMESTRE
Casablanca, August 28, 2023
Strong growth in revenue and successful execution of the AccelR8 plan Sustained momentum in the deployment of PowerCARD projects in Europe and Asia Ongoing decline in debt and decline in cash in a context of development
Consolidated financial statements key figures
QUARTERLY ACTIVITY INDICATORS IN M MAD 1
T2 2023
T2 2022
Variation
Exploitation product
296,6
259,7
14,2%
Of which recurring and regular income
184,7
199,6
-7,5%
research
41,0
40,9
0,2%
CUMULATIVE ACTIVITY INDICATORS IN M MAD 1
June 2023
June 2022
Variation
Exploitation product
562,0
481,0
16,9%
Of which recurring and regular income
368,6
352,5
4,6%
research
72,0
66,9
7,6%
CUMULATIVE BALANCE SHEET INDICATORS IN MAD 1 M
June 2023
December 2022
Variation
Debt2
123,7
149,9
-17,5%
Treasury
207,0
238,3
-13,1%
Key figures of social accounts
QUARTERLY INDICATORS IN MAD 1 M
T2 2023
T2 2022
Variation
Exploitation product
234,3
183,4
27,7%
CUMULATIVE INDICATORS IN M MAD 1
June 2023
December 2022
Variation
Debt2
97,9
111,4
-12,1%
1. Situation established on the basis of management reporting – 2. The indebtedness includes the medium-term loans taken out as well as the leasing contracts taken out (figures at 06/30/2023 vs. 12/31/2022
Activity analysis
Revenue
Consolidated revenues for the second quarter of 2023 amounted to MAD 296.6m, recording an increase of 14.2% compared to the second quarter of 2022. This growth is mainly driven by the acceleration of the deployment of PowerCARD projects during of the second trimester. The Group continues to deploy its strategic development plan, which saw the signing in June of a first contract in SaaS mode with one of the main banks in Canada, as well as the opening of a new office in Montreal to develop activity in the region. At the end of June, consolidated revenue stood at MAD 562m, up 16.9% (+21.6% at constant exchange rate) compared to 2022. This trend is also reflected in the level of regular and recurring revenue from the Group which increased by 4.6%.
Activity Payment
The Payment activity recorded a significant increase in its revenues for the half-year (+17.4%), in line with the Group’s strategic orientations. This remarkable performance is driven by the acceleration of the deployment of several major PowerCARD projects, particularly in Asia and Europe. New requests (upselling) from our existing customers also continue to grow strongly (+24.3% compared to
2022. On the other hand, recurring and regular revenues decreased slightly during the 2nd quarter due to the decline in license extensions which were at an exceptionally high level in the 2nd quarter of 2022. During the 1st half, the Payment activity continued to benefit increasing contribution of the SaaS model of the PowerCARD platform. This trend should continue with the signing of a major contract in Canada and given the significant outlook for the second half.
Switching activity
As part of its contribution to the continuous development of electronic banking in Morocco, HPS Switch is actively pursuing the strengthening of its infrastructure in order to guarantee optimized availability of its services. These initiatives resulted in a notable increase of 10.1% in revenues generated by the Switching activity, compared to the same period in 2022.
Testing activity
During the first half, the Testing activity evolved in an economic context marked by a reduction in corporate investment expenditure and a decline in household consumption, under the eect of inflationary pressure. This situation had a negative impact on revenues from the Testing activity for the half-year, which recorded a drop of 2.1% compared to last year.
research
The first half of 2023 was characterized by the continuation of developments concerning version 4 of PowerCARD, the completion of which is scheduled for the first half of 2024, accompanied by the industrialization of the testing approach as well as the relative eorts improving software security. During this period, the HPS Group
invested 72 M MAD in Research & Development, thus recording an increase of 7.6% compared to the same corresponding period of 2022.
Breakdown of revenue by activity and by geographic area as of June 30, 2023
Testing -2,1%
Switching +10,1%
ts 31%
in
rr
u
c
It is
r
n
o
n
s
u
e
e
n
23%
R
v
8%
7%
17%
3%
R
e
v
e
n
u
s
r
It is
cu
rent 47%
R
e
v
e
n
u
s
r
It is
g
u
l
i
e
r
s
22%
2
2
%
85%
20%
Payment +17.4%
PowerCARD projects 23%)
Upselling 22%)
Maintenance 20%)
Licence 3%)
SaaS royalties 17%)
EUROPE
ASIA
24,7%
AMERICAS
16,8%
3,2%
MOYENORIENT
AFRICA
17,1%
38,3%
Change in consolidation scope
The HPS consolidation scope changed during the first half of 2023 with the entry into the scope of HPS South Africa, 100% owned by HPS and fully consolidated.
Investments
During the second quarter of 2023, the investments of the HPS Group mainly focused on the acquisition of computer hardware and office equipment, as well as the necessary adjustments in the workspaces to support the continuous evolution of the activities.
Endeement
Operational performance during the six months of 2023 was accompanied by strong control of the Group’s debt, which stood at 123.7 M MAD once morest 149.9 M MAD at the end of 2022. Elsewhere, the sustained development of the various projects resulted in an increase in working capital requirements, resulting in a 13.1% drop in cash at the end of June 2023.
Perspectives
To support the continued growth of payment technologies and strengthen its position in an ever-changing industry, the HPS Group is ensuring the successful execution of its development plan for 2027 “AccelR8”, aimed at stimulating revenue growth in terms of focus on increasing recurring and regular revenue, as well as expanding geographic coverage. The Group’s performance during the quarter confirms the relevance of its strategic choices, both in terms of organic growth and in terms of international development, for the achievement of the objectives for the year, aiming for revenue growth including between 20% and 25% as well as an EBITDA margin ranging from 25% to 30%.
About HPS
HPS is a global leader in providing payment solutions and services for Issuers, Acquirers, Processors, Mobile Network Operators (MNOs), Retailers, Independent Sales Organizations ISOs), as well as National Switches and regions around the world. PowerCARD is a comprehensive suite of solutions from HPS that spans the entire payment value chain. It enables innovative payments thanks to its open platform which handles the processing of all transactions initiated by all means of payment from any channel. PowerCARD is used by over 450 institutions in over 90 countries. HPS has been listed on the Casablanca Stock Exchange since 2006 and has offices in the main business centers (Africa, Europe, Asia, Middle East). More information on: www.hps-worldwide.com
HPS – Siège Social
Contact
Casablanca Nearshore Park, Shore 1 – 1100, bd Al Qods – Sidi Maârouf 20270 – Casablanca – Morocco – Tel: + 212 529 045 000
Disclaimer
HPS – Hightech Payment Systems SA published this content on 28 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 August 2023 19:45:29 UTC.
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Hightech Payment Systems (HPS) specializes in the design, development and installation of payment systems. The group’s activity is essentially organized around 5 divisions: – sale and implementation of payment systems: installation of new systems (electronic payment terminals, automatic teller machines, Internet payment solutions, etc.), migration services and extension of licenses; – maintenance services; – installation of additional options; – sale of ancillary equipment; – sale of outsourced management software for the payment system: ASP software. Products and services are marketed through regional offices and through partnership agreements with third-party distributors.
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Average recommendation
ACHETER
Last Closing Price
5945.00MAD
Average price target
7703.00MAD
Deviation / Average Target
+29.57%
Consensus
1693254584
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