Revenues continue to be above target – operating profit impacted by currency effects and below expectations
Karlsruhe, 7 August 2015.
init innovation in traffic systems AG (ISIN DE 0005759807) reported an improvement in revenues in the first half of financial year 2015. Ongoing major projects were accounted for according to plan, resulting in a pleasing year-on-year increase in total revenues in excess of 7 per cent to EUR 47.1m (prior year: EUR 43.9m).
Although revenues even came in above target, the half-year results were impacted by negative currency effects. Earnings before interest and taxes (EBIT) were less dynamic than planned in the second quarter due to the exchange rate volatility and expenses incurred by new development work on current major projects and activities in the Asian market. Although the result of the second quarter compared to the first quarter of 2015 doubled to EUR 2.5m, however, the value of EUR 3.7m as at 30 June 2015 is significantly lower than in the prior year (EUR 6.4m).
Net profit accordingly declined as at 30 June 2015 year-on-year to around EUR 2.4m (Q1-Q2 2014: EUR 4.3m). This corresponds to earnings per share of EUR 0.23 (Q1-Q2 2014: EUR 0.44). Taking into account unrealised gains from currency translation, total comprehensive income presented a more positive picture, even rising to EUR 4.8m as at 30 June 2015 year-on-year (Q1-Q2 2014: EUR 4.5m).
Over the year as a whole, the Managing Board holds on to its revenue forecast of EUR 104m to 110m for 2015. Whether it succeeds in reaching its targeted earnings before interest and taxes (EBIT) will largely depend on developments in the second half of the year – in particular with regard to exchange rates. The Managing Board still considers EBIT of its current planning of between EUR 17m and 19m to be achievable.
A continued high order backlog of some EUR 121m covers more than the one-year revenues. Over the longer term, the large number of international tenders that have been put out for public transport infrastructure projects, telematics and ticketing systems also give cause to be confident about init's future growth.
