init innovation in traffic systems SE confirms growth targets for 2020

• Revenue rises to EUR 81.4m in the first half year (previous year: EUR 77.1m)
• Cash flow from operating activities almost doubled to EUR 13.8m (previous year: EUR 7.3m)

After the first six months of the 2020 financial year, init innovation in traffic systems SE (ISIN DE 0005759807) is well on the way to achieving the growth targets set for the year as a whole. "The financial figures meet our expectations. We therefore confirm our existing forecast. We continue to see the revenue target for the 2020 financial year at around EUR 180m and operating earnings before interest and taxes (EBIT) at EUR 18m to 20m," says the Managing Board according to the interim figures for the first half of the year.

In the second quarter of 2020 the digitisation specialist in public transport posted revenues of EUR 41.1m (Q2 2019: EUR 41.7m). Revenues in the init group within the first six months of 2020 thus rose to EUR 81.4m. This is an increase of 6 percent compared to the previous year (EUR 77.1m). It should be noted that the distribution of revenues within the init group is uneven over the quarters and that the second half of the financial year is traditionally the stronger one.

EBIT for the first half of the year of EUR 6.2m is in line with the planning despite the decline compared to the first half of 2019 (EUR 8.1m). The first half of the previous year was characterised by a high level of follow-up delivery business with average strong margins.

The cash flow from operating activities in the init group continued to improve considerably. At EUR 13.8m, it almost doubled compared to the previous year (EUR 7.3m).

This also applies to the order situation: In the first half of 2020, the volume of incoming orders totalled around EUR 88m (30 June 2019: around EUR 114m). "We would even have exceeded the previous year's figure if the contract for the major project in Houston could have been signed as originally scheduled in the second quarter," emphasises the Managing Board. The signing of this contract was announced for the first half of 2020 in accordance with the ad hoc release on 27 February 2020, but is likely to be postponed to the second half of 2020 due to corona. Despite the persistent uncertainties in the world economy, init therefore continues to expect to achieve its target of EUR 180m to 190m in incoming orders for 2020.

Direct effects of the corona crisis on revenues and earnings planning for 2020 are not yet discernible at the present time, although this may change in the short term due to the dynamic development.

Managing Board plans further sustained growth of 15 percent

In its outlook for the future, the Managing Board sees further opportunities to offer customers new technologies and IT solutions from the current situation. Demand in some areas has even been strengthened by the coronavirus pandemic. Contactless payment, passenger guidance (social distancing) and passenger counting are among the solutions, which init offers and are now in demand.

init will continue to be strongly involved in research and development to further advance current trends such as digitisation, electromobility, mobility as a service and autonomous driving in public transport.

Overall, the Managing Board continues to plan in its road map sustained revenue growth averaging 15 percent annually.