HiPay Group

Earnings Release • Sep 14, 2023

H1 2023 results: HiPay reports strong growth (+18.8%), EBITDA margin picking up at €3.7 million and positive current operating income (€1.3 million)

• Payment volume rises sharply to 4.1 billion euros in H1 2023, up +13.9% vs. H1 2022.
• The Fintech's commercial activity is excellent, with strong turnover growth to 32.6 million euros, outperforming processed volumes with an increase of +18.8%.
• EBITDA stands at 3.7 million euros, i.e., 11.3% of turnover, a level never before achieved by the Group.
• Current operating income amounts to 1.3 million euros (-3.0 million euros in H1 2022), and operating income is positive at 0.3 million euros vs. -3.1 million euros a year ago.

Paris, September 14, 2023, at 8 a.m.: HiPay (ISIN code FR0012821916 – ALHYP), the Fintech specializing in omnichannel payment solutions, has announced its results for the first half of 2023.

in millions of euros	H1 2023	H1 2022	Var. %
Consolidated income
Payment volume	4,093	3,594	+13.9%
Turnover 1	32.6	27.5	+18.8%
EBITDA 1	3.7	-0.8	N/A
Current operating income 1	1.3	-3.0	N/A
Operating income 1-2	0.3	-3.1	N/A
Net income 1	-0.7	-3.6	+80%
Consolidated balance sheet
Shareholder capital 1	21.4	26.5	-19.4%
Cash 1	2.0	1.5	+34.2%

The Company's Board of Administrators met on September 13, 2023 under the chairmanship of Benjamin Jayet and approved the Group's half-year consolidated financial results.

The consolidated half-year financial statements will be published before the end of September.

Strong payment flow growth

Payment volume grew strongly by +13.9% to 4.1 billion euros in the first half of 2023.

HiPay is keeping pace with the shift in global commerce towards digital, while building on its omnichannel payment offering, and gains new market share with the signing of 160 new key accounts, i.e., a 5.96% growth compared with the first half of 2022 (151 new customers).

The strong first-half growth demonstrates the robustness of the HiPay business model combined with high levels of customer satisfaction.

Turnover growth

Overall turnover rose to 32.6 million euros (+18.8% vs. H1 2022).

This growth in revenue exceeds that of payment volume, due in particular to stronger growth in more profitable payment methods (product mix effect).

Significant EBITDA and current EBIT

Strong growth and mix effects on margins, combined with an ambitious cost-cutting plan, enabled the Group to report a positive current operating margin for the first time in the first half of a year.

At the Group level, expenses level improved significantly. HiPay's transactional direct costs are under control, rising less than flows, and staff costs are down by 5%.

As a result, the EBITDA margin stands at 11.3% of the revenue (vs. -3% in 2022) and current EBIT at 1.3 million euros (3.9% of the revenue).

After taking into account non-recurring costs (litigation, IFRS 16, etc.) and due to interest rates increasing, setting the cost of debt at 0.9 million euros, net income amounts to -0.7 million euros.

Outlook

The implementation of a strict cost-cutting plan has enabled HiPay to return to profitability without impacting its capacity for strong growth.

In the long term, the implementation of growth investments will accompany the structuring of the Group's strategy, which nevertheless intends to continue to control its costs and optimize its organization.

For the 2023 financial period, HiPay is still aiming for growth above 10%, as well as positive operating profitability and net income, which should be boosted by seasonal effects during the second half of the year.

Next financial communication:

October 26, 2023 (before market opening) – Revenue for the 3rd quarter of 2023

About HiPay

HiPay is a global payment service provider. By harnessing the power of payment data, we help our merchants grow by providing them with a 360-degree view of their business. More information on hipay.com

HiPay Group is listed on Euronext Growth (ISIN code: FR0012821916 – ALHYP).

Investor Relations

Eric Meynard (DGM) +33 (0)6 98 04 33 07 emeynard@hipay.com

This press release does not constitute an offer to sell or the solicitation of an offer to purchase HIPAY securities. If you wish to obtain more information on HiPay Group, we invite you to refer to our website at hipay.com, under Investors. This release may contain certain forward-looking statements. Although HiPay believes these statements are based on reasonable assumptions as of the date of this release, they are inherently subject to risks and uncertainties that may cause actual results to differ from those expressed or implied by these statements. HiPay Group operates in a highly-evolving industry in which new risk factors may emerge. HiPay Group assumes no obligation to update these forward-looking statements to reflect new information, events or circumstances.

Consolidated income ¹

in thousands of euros	30 June 2023	30 June 2022
Turnover	32,640	27,475
Direct costs	- 15,948	- 14,667
Staff costs	- 8,241	- 8,685
General costs	- 4,763	- 4,962
EBITDA 2	3,688	- 839
Allocation to and writebacks of amortization and provisions	- 2,400	- 2,126
Current operating income	1,288	- 2,965
Valuation of stock options and free shares	373	- 246
Other non-current expenses	- 1,378	62
Operating income	283	- 3,148
Other financial income and expenses	- 882	- 368
Pre-tax income	- 599	- 3,516
Tax	- 102	- 72
Net income	- 702	- 3,589

1 Unaudited data

² Current operating income before allocation to and writebacks of amortization and provisions

Consolidated balance sheet ¹

ASSETS - in thousands of euros	30 June 2023	31 Dec. 2022	30 June 2022
Net goodwill	40,222	40,222	40,222
Net intangible assets	7,529	7,864	7,651
Net tangible fixed assets	5,422	6,361	7,023
Deferred tax assets	1,424	1,423	1,439
Other financial assets	1,058	1,115	1,151
Non-current assets	55,656	56,986	57,486
Clients and other receivables	2,191	2,570	2,027
Other current assets	116,253	111,837	93,528
Cash and cash equivalents	2,020	1,632	1,505
Current assets	120,464	116,039	97,060
TOTAL ASSETS	176,119	173,025	154,545

LIABILITIES - in thousands of euros	30 June 2023	31 Dec. 2022	30 June 2022
Share capital	19,844	19,844	19,844
Issue and acquisition premiums	50,156	50,156	50,156
Reserves and retained earnings	- 47,941	- 39,800	- 39,904
Consolidated income (Group share)	- 702	- 7,781	- 3,589
Equity	21,357	22,419	26,507
Long-term loans and financial liabilities	12,092	12,055	11,962
Non-current provisions	6,859	6,244	3,305
Non-current liabilities	18,951	18,298	15,267
Short-term financial liabilities and bank
overdraft	14,085	13,326	13,361
Suppliers and other creditors	8,621	7,700	6,970
Other current liabilities	113,105	111,283	92,440
Current liabilities	135,811	132,308	112,771
TOTAL LIABILITIES	176,119	173,025	154,545

1 Unaudited data

Consolidated cash flow statements ¹

in thousands of euros	30 June 2023	30 June 2022
Net income	- 702	- 3,589
Adjustments for:
Amortization of fixed assets	1,708	1,358
Amortization of IFRS 16 fixed assets	760	757
Other elements with no cash impact	0
Provisions for tax risks	615	38
Cost of IFRS 16 debt	136	154
Cost of debt	733	370
Gains and losses on disposal of securities	0	0
Gains and losses on disposal of fixed assets	0	0
Gains and losses on disposal of fixed assets - IFRS 16	- 5	0
Cost of share-based payments	- 373	246
Current and deferred tax expenses	102	72
Operating income before WCR variation and provisions	2,974	- 594
WCR variation	- 730	72
Cash flow from operational activities	2,244	- 666
Interest paid	- 60	- 370
Income tax paid	- 103	- 111
Net cash from operational activities	2,081	- 1,147
Acquisition of fixed assets, claims and liabilities	- 1,740	- 2,504
Variation in financial assets	56	1
Net cash from investment activities	- 1,684	- 2,503
New loans	2,004	4,420
Loan repayments	- 1,160	- 516
IFRS 16 lease liability repayment	- 729	- 714
IFRS 16 interest paid	- 136	- 154
Net cash from funding activities	- 21	3,036
Net variation of cash and cash equivalents	388	- 619
Net cash on 1 January	1,632	2,124
Net cash at end of period	2,020	1,505

1 Unaudited data