At EUR 59.3m, revenues after the first six months were up slightly on the previous year (EUR 58.3m)
Increased investments in research and development
Operating cash flow increased by over EUR 10m
Karlsruhe, 7 August 2018.
After the first six months of the 2018 financial year, init innovation in traffic systems SE (ISIN DE 0005759807) is well on track to achieve the targets set for the year as a whole. The key figures were largely in line with the Managing Board’s expectations. The international leading provider of integrated planning, dispatching, telematics and ticketing systems for buses and trains therefore confirms its guidance on revenues (EUR 135 to 145m) and EBIT (between EUR 10 and 12m).
In the first six months of 2018, revenues in the init group stood at EUR 59.3m, which is up slightly on the prior-year figure (H1 2017: EUR 58.3m) and therefore within the scope of planning. Traditionally, the third and above all the fourth quarters are particularly strong at init in terms of revenues and earnings.
The improvement in cash flow from operations was exceptional. At EUR 4.0m, it was more than EUR 10m higher than the figure for the same period of the previous year (H1 2017: EUR -6.3m). This is attributable to a consistent “credit collection” and the associated sharp reduction in liabilities.
Order backlog of EUR 130m at the end of June
The operating result on the other hand fell by EUR 1.2m year-on-year to EUR 1.1m (H1 2017: EUR 2.3m). At EUR 4.5m in the first half of 2018, some EUR 1.1m more were invested in research and development than in the previous year.
All in all, init managed to acquire new orders totalling EUR 44.3m in the second quarter (Q2 2017: EUR 42.5m). The figure stood at around EUR 73m as of June 2018 (30 June 2017: EUR 84m). The order backlog as of 30 June 2018 was around EUR 130m. “init is therefore very likely to reach the target of EUR 140 to 150m for incoming orders in 2018 – despite persistent global uncertainties”, the Managing Board stated in his outlook.
In the North American business, the decision on several large orders was deferred to the second half of the year. At the start of July, init secured a strategically important large order from Metrolink, Los Angeles, one of the largest regional transport associations in the US and operator of the local rail transport network in Southern California. INIT Innovations in Transportation, Inc. – the wholly owned US subsidiary – won a contract to update and modernise the existing payment system. The order comprises 155 new Ticket Vending Devices (TVDs), Ticket Office Machines (TOMs), and a core back-office account-based system. Another milestone was reached in Turku, Finland, where the first time the credit and bank card standard EMV will be implemented as a payment method in public transport in Scandinavia.
Digital disruption acts as a growth accelerator
Turku and Metrolink are only two examples of innovative disruption by means of which init can make “mobility 4.0” a reality for its customers. “We are also currently working on a series of other digital research projects”, the Managing Board explained in his report. These concern, among other things, the optimum deployment and infrastructure planning for electric buses as well as the ITCS-controlled operation of self-driving public buses, the networking of existing mobility offerings in a region or the protection of underground public transport systems, and the development of an inter-modal travel information and booking platform.
init therefore continues to expect growth to accelerate, especially in the ticketing business. As a full-service provider, init will become increasingly important as a partner for transport companies in the long term, also in managing the entire technical operation of systems. This opens up additional growth opportunities and leads to much greater customer loyalty.
The half-year financial report for 2018 will be published on 9 August 2018.
