Banqup Group (BANQ) H1 2024 earnings summary

Executive summary

• H1 2024 focused on portfolio rationalization, divestments, and strategic partnerships to strengthen core business and financial health, with digital services revenue growing 12.8% year-over-year (excluding divestments) and the customer base surpassing 1.3 million.

• Key divestments included Fitek, ONEA, 21grams, and Balkan printing, each paired with strategic partnerships to expand market reach, especially in the Nordics and with PostNord.

• Signed a partnership with Your.World, divesting the identity access management business in the Netherlands, to focus on integration with EU-wide identity providers.

• Platform investments and regulatory readiness position the company for upcoming e-invoicing mandates across Europe.

• SME platforms (Banqup, Billtobox, jefacture.com) reached 174,000 customers, with strong growth in Belgium and France.

Financial highlights

• Total H1 2024 revenue: €50.8 million, up 0.9% year-over-year.

• Digital service revenue grew 10.9% year-over-year, or 12.8% excluding Fitek and ONEA, reaching €30.4 million.

• Recurring digital service revenue at 91.2%.

• Gross margin for digital business increased to 67%, targeting 70%.

• EBITDA improved to near break-even at -€26k from -€3.6 million in H1 2023.

• Operating cash flow positive at €5.5 million; cash position at end of June €18.7 million.

• OPEX reduced by 7% year-over-year; cost structure excluding non-cash items down over 9%.

• Loss for the period from continuing operations was €18.95 million; total loss including discontinued operations was €24.35 million.

Outlook and guidance

• Free cash flow break-even expected by end of 2025, supported by divestments and cost-saving measures.

• Regulatory-driven market expansion anticipated from 2025–2027, with mandates in Belgium, France, and Germany.

• Ongoing investments in R&D and platform readiness to support mass onboarding as regulations take effect.

• Digital services revenue growth for 2024 expected in the low teens percentage range.