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HiPay Group
Earnings Release • Apr 8, 2021
1404_iss_2021-04-08_71021fc5-3707-47ed-bf6b-cd6fac309659.pdf
Earnings Release
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2020 Financial Results: HiPay confirms its profitable growth. Current EBIT at break-even. Strong revenue growth (+31%, € 46 million).
- Revenues1 up by +31% compared to 2019, driven by higher payments volume (+43%).
- The business activity is driven by organic growth and 305 new key accounts.
- Profitable growth for the second consecutive year with EBITDA at €3.4 million in 2020.
- Improvement of net income at € -1.8 million vs. € -5.7 million in 2019.
Paris, April 8th, 2021: HiPay (ISIN code FR0012821916 – HIPAY), the fintech specialized in omnichannel payment solutions, presents its 2020 results.
| In million euros |
2020 | 2019 | Var. % | ||
|---|---|---|---|---|---|
| Consolidated Income Statements | |||||
| Payments volume | 5 565 | 3 893 | + 43 % | ||
| Revenues1 | 45,7 | 34,9 | + 31 % | ||
| EBITDA1 | 3,4 | 0,1 | - | ||
| Operating income1 | -0,1 | -3,9 | +97 % | ||
| Net income1 | -1,8 | -5,7 | +68 % | ||
| Consolidated Balance Sheets | |||||
| Shareholders' equity1 | 34,5 | 36,8 | -6 % | ||
| at hand1 Cash |
3,1 | 1,6 | +94 % |
1 The consolidated accounts as of December 31st, 2020 were approved by the Board of Directors on April 2nd, 2021 and are being audited by the statutory auditors. The 2020 financial report and the auditors' report will be available on the company's website.
Press Release
Strong growth of revenue and payments volume
In 2020, HiPay's payments volume reached €5.6 billion (+43% vs. 2019) and revenues stood at € 45.7 million (+31% vs. 2019).
The organic growth of transaction volume and revenues derives for 60% from existing customers' as at 1st of January, and for 40% from new business signed during the year. Thus, despite the sanitary crisis, commercial strategy continues to show positive results, with the acquisition of 305 key accounts in Europe.
The revenue rate stood at 0.82% (vs. 0.90% in 2019). This slight decrease is explained by the commercial strategy required to acquire new key accounts. The variable direct costs rate remains at 0.45%, stable compared to 2019.
Significant improvement in profitability
The important growth of payments volume and revenue has enabled the company to achieve an EBITDA of €3.4 million (vs. € 0.1 million in 2019). The increase in activity was coupled with a control of operating expenses and salaries. In addition, the sanitary crisis led to economy of approximately € 1.8 million (including € 0.8 million in salary costs), which should not be renewed in 2021.
The current operating income stood at € -0.1 million compared to € -3.9 million on December 31st, 2019, an improvement of € +3.8 million.
After considering the non-current income of € -0.2 million, the financial result of € -1.2 million and a tax charge of € 0.1 million, the net income stood at € -1.8 million (vs. € -5.8 million on December 31st, 2019).
These results, which have improved significantly over 2020, comes from (i) the strong revenue growth, (ii) the sound management of operating costs and (iii) continued investment in technology.
Cash position
As of December 31st, 2020, the company had €3.1 million of cash at hand, after borrowing through two State Guaranteed Loans (Prêts Garantis par l'Etat - PGE) €3.6 million. In addition, there is an unused balance of BJ Invest current account for €3.6 million.
Thus, as of 31 December 2020, HiPay had a total financing capacity of € 6.7 million, which ensures its development.
Grégoire Bourdin, CEO of HiPay, said: "HiPay demonstrates once again its scalable business model. In 2020, the revenue and payments volume growth has enabled us to significantly improve our profitability. Despite a complex macroeconomic situation, HiPay teams have been mobilised to provide the best support to our customers."
Next financial communication: April 29th, 2021 (before market) – 2021 Q1 Revenue
About HiPay
HiPay is a global payment provider. By harnessing the power of payment data, we participate in our merchants' growth by bringing them a 360° vision of their activities.
HiPay Group is listed on the Euronext Paris Compartment C (ISIN code: FR0012821916 - Mnemo: HIPAY) More information on hipay.com and find us on LinkedIn.
Press Contact Vae Solis Communications Jawad Khatib +33 (0)6 12 66 22 49 [email protected]
This press release does not constitute an offer to sell or the solicitation of an offer to buy HIPAY securities. If you would like more complete information about HiPay Group, please refer to our website hipay.com, Investors section. This press release may contain certain forward-looking statements. Although HiPay Group believes that these statements are based on reasonable assumptions as of the date of this press release, they are by their nature subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by these statements. HiPay Group operates in a highly evolving sector in which new risk factors may emerge. HiPay Group does not undertake any obligation to update these forward-looking statements to reflect new information, events or other circumstances.
Consolidated Income Statements 2020 et 2019
| in thousand euros | Dec. 31st, 2020 | Dec. 31st, 2019 |
|---|---|---|
| Revenue | 45 713 | 34 872 |
| Direct costs | - 25 105 | - 17 442 |
| Payroll charges | - 12 999 | - 12 321 |
| General expenses | - 4 221 | - 4 985 |
| EBITDA | 3 387 | 124 |
| Depreciation and amortization | - 3 514 | - 4 041 |
| Current operating profit | - 127 | - 3 917 |
| Stock based compensation | - 168 | - 112 |
| Other non-current income and charges | - 228 | - 704 |
| Operating profit | - 522 | - 4 733 |
| Cost of indebtedness | - 610 | - 476 |
| Other financial income and charges | - 554 | - 476 |
| Other financial income and charges | - 1 164 | - 952 |
| Earning of the consolidated companies | - 1 686 | - 5 684 |
| Share in the earnings of the companies treated on an equity basis | - | - |
| Earnings before tax of the consolidated companies | - 1 686 | - 5 684 |
| Income Tax | - 142 | - 66 |
| Income Tax on non-recurring items | - | - |
| Net income from continuing operations | - 1 828 | - 5 750 |
| Including minority interests | - | - |
| Including Group share | - 1 828 | - 5 750 |
| Net income from operations sold | - | - |
| Including minority interests | - | - |
| Including Group share | - | - |
| Activities discontinued / In the process of being sold | - | - |
| Net income | - 1 828 | - 5 750 |
| Including minority interests | - | - |
| Including Group share | - 1 828 | - 5 750 |
Consolidated Balance Sheets 2020 and 2019
| ASSETS - in thousand euros | Dec. 31st, 2020 | Dec. 31st, 2019 |
|---|---|---|
| Net Goodwill | 40 222 | 40 222 |
| Net intangible fixed assets | 5 480 | 4 901 |
| Net tangible fixed assets | 8 591 | 8 667 |
| Deferred tax assets | 1 437 | 1 434 |
| Other financial assets | 1 117 | 1 320 |
| Non-current assets | 56 847 | 56 545 |
| Receivables and other debtors | 2 239 | 2 218 |
| Other current assets | 101 263 | 76 384 |
| Current financial assets | - | - |
| Cash and cash equivalents | 3 081 | 1 557 |
| Assets held for sale and discontinued operations | - | - |
| Current assets | 106 583 | 80 159 |
| TOTAL ASSETS | 163 430 | 136 704 |
| LIABILITIES - in thousand euros | Dec. 31st, 2020 | Dec. 31st, 2019 |
| Share capital | 19 844 | 54 505 |
| Premiums on issue and on conveyance | 50 156 | 15 495 |
| Reserves and retained earnings | - 33 686 | - 27 470 |
| Consolidated net income (Group share) | - 1 828 | - 5 750 |
| Shareholders' equity (Group share) | 34 485 | 36 780 |
| Minority interests | - 0 | - 0 |
| Shareholders' equity | 34 485 | 36 780 |
| Long-term borrowings and financial liabilities | 16 233 | 15 820 |
| Non-current Provisions | 624 | 616 |
| Non-current liabilities | - | - |
| Deferred tax liabilities | - | - |
| Non-current liabilities | 16 857 | 16 436 |
| Short-term financial liabilities and bank overdrafts | - | 45 |
| Current provisions | - | - |
| Suppliers and other creditors | 4 323 | 4 889 |
| Other current debts | 107 765 | 78 553 |
| Current liabilities | 112 088 | 83 487 |
| TOTAL LIABILITIES | 163 430 | 136 704 |
Consolidated Cash Flow Statements 2020 and 2019
| In thousand euros | Dec. 31st, 2020 | Dec. 31st, 2019 |
|---|---|---|
| Net income | -1 828 | -5 750 |
| Adjustments for: | ||
| Depreciation of the fixed assets | 2 023 | 2 215 |
| Depreciation of fixed assets IFRS 16 | 1 503 | 1 395 |
| Other elements without impact on the cash | -59 | -87 |
| Cost of debt IFRS 16 | 85 | 351 |
| Financial income and charges | 391 | 124 |
| Result on sale of equity securities | 16 | 0 |
| Net income on disposals of fixed assets | -1 | 8 |
| Net income on disposals of fixed assets | -110 | 0 |
| Reevaluation IFRS16 | 0 | 0 |
| Costs of payments based on shares | 168 | 112 |
| Tax charge or proceeds | 141 | 63 |
| Operating profit before variation of the operating capital need and provisions | 2 329 | -1 569 |
| Variation of the operating capital need | -2 736 | 2 460 |
| Cash flow resulting from operating activities | -407 | 891 |
| Interest paid | -11 | -124 |
| Tax on earnings paid | -2 | -377 |
| Net Cash Flow Resulting From continuing Operating Activities | -420 | 390 |
| Net Cash Flow Resulting From operating activities of divested operations | - | 0 |
| Net Cash Flow Resulting From Operating Activities | -420 | 390 |
| Acquisition of fixed assets, debt | -3 592 | -3 718 |
| Variation of financial assets | 204 | -919 |
| Effect of the perimeter variations | - | 0 |
| Net Cash Flow Resulting From continuing investing Activities | -3 388 | -4 637 |
| Net Cash Flow Resulting From operating investing of discontinued operations | - | 0 |
| Net Cash Flow Resulting From Investing Activities | -3 388 | -4 637 |
| New borrowings | 6 522 | 4 643 |
| Loan repayments | -130 | -237 |
| Repayment of rent debt IFRS 16 | -793 | -941 |
| Other financial liabilities variation | -220 | -225 |
| Dividends paid to minority interests | - | 0 |
| Net Cash Flow Resulting From continuing Financing Activities | 5 379 | 3 240 |
| Net Cash Flow Resulting From Financing Activities | 5 379 | 3 240 |
| Effect of exchange rates variation | - 0 | 0 |
| Net Variation Of Cash And Cash Equivalents from continuing Activities | 1 569 | -1 007 |
| Net cash on January 1st | 1 512 | 2 519 |
| Net cash at the end of the period | 3 081 | 1 512 |