Share price jump: Eurowag revenue jumps more than third but profits trail behind
Pan-European payments platform Eurowag has enjoyed a revenue bump of more than a third in the past year, though pre-tax profits trail behind.
The transport-focussed platform, which raised €200m (£171m) in its initial public offering (IPO) in London last year, snagged €1.6bn (£1.3bn) in revenue in the 12 months to 31 December.
The climbing revenue clearly caught investors eyes this morning, with shares surging nearly 10 per cent to 90p per share by late morning.
However, the fintech firm’s pre-tax profit sank more than 38 per cent from its 2020-high of €28.8m (£24m) to €17.7m (£14.7m) in 2021.
The company also had its earnings per share collapse nearly 60 per cent in the period, from 3.76 cents (3.1p) to 1.54 cents (1.28p), following booming interest in financial technology amid the pandemic.
Despite the deflated share earnings, independent non-executive director and chair Paul Manduca said the company is “in a good position to continue to broaden its technological foundations and capabilities.
“With its accelerated growth plans, the company is committed to its mandate from shareholders to make select strategic acquisitions and expand our market offering.”
The group, which has a limited exposure to Russia and Ukraine, added that it has discontinued its payments network in Russia following its invasion of neighbouring Ukraine.
CEO Martin Vohánka added: “The shocking act of unprovoked and unjustified aggression from the Russian Federation against Ukraine is unfolding as we publish this report. Following the invasion the group took immediate steps to comply with sanctions and suspend all services we provided in Russia.
“Notwithstanding the uncertain operating environment, the management remains focused on strategic priorities, drawing on the strength of our business model and its resilience proven over previous economic cycles.”