Austriacard Holdings has recorded an increase in revenue and profitability in the first half of 2024, mainly due to the growth of the technology sector.

With a nearly quadrupling of revenues in the Digital Transformation Technologies segment and growth in the Document Lifecycle Management segment, group revenues in H1 2024 increased by 7.0% compared to H1 2023 to reach EUR 192.0 million.

Revenues derived from the Central and Eastern Europe geographic segment increased by 14.2% to €121.6 million, and revenues from the Turkey, Middle East, and Africa geographic segment increased by 24.5% to €37.5 million, further supporting the group's revenue growth.

The improved sales mix led to a 10.1% increase in gross profit to €48.8 million, and gross margin was 25.4% compared to 24.7% in the same period last year.

The composition of the sales mix, with a strong increase in the technology segment's contribution, combined with operating cost containment, significantly boosted operating profitability, leading to an increase in adjusted EBITDA of 11.2% to €28.8 million and a 15.0% margin.

Net profit after tax amounted to € 11.2 million, and the margin was 5.9%.

AUSTRIACARD HOLDINGS AG Group Vice President and CEO Manolis Kontos noted:

"In line with the outlook we had highlighted in our Q1 2024 results release, our growth accelerated significantly during the second quarter, which saw revenue growth of around 13%, leading to H1 2024 revenue growth of 7% and an even higher adjusted EBITDA growth of 11.2%. Our strategy to transform the company into a technology solutions provider is already being implemented, with revenues in this segment growing fourfold to EUR 16.3 million compared to EUR 4.4 million in H1 2023.

An increase was also achieved in the Document Lifecycle Management segment, while the Secure Chip & Payment Solutions segment recorded a slight decrease, due to the discontinuation of the low-margin wholesale chip modules business and our decision to focus on selling integrated smart card solutions.

We continue our expansion into Turkey, the Middle East, and Africa, a geographic area from which we have high growth expectations, while maintaining our leadership position in all markets in which we operate, as well as in Challenger/Neo Banks, where our more sophisticated products, such as metal payment cards, are proving to be a powerful marketing tool for our B2B customers seeking differentiation and innovation in their service offerings.

We confirm that we are on track to meet or exceed our FY 2024 forecast of 10% revenue growth and 12% adjusted EBITDA growth,as a result of enhanced operating synergies and our improved sales mix with a primary focus on digital transformation technologies."