from AUSTRIACARD HOLDINGS AG (isin : AT0000A325L0)
AUSTRIACARD HOLDINGS AG ANNOUNCES Q1 2025 RESULTS
EQS-News: AUSTRIACARD HOLDINGS AG / Key word(s): Quarter Results
AUSTRIACARD HOLDINGS AG ANNOUNCES Q1 2025 RESULTS
19.05.2025 / 18:46 CET/CEST
The issuer is solely responsible for the content of this announcement.
AUSTRIACARD HOLDINGS AG
ANNOUNCES Q1 2025 RESULTS
Digital Technologies continued its positive momentum
Turkish market normalisation
May 19, 2025 – AUSTRIACARD HOLDINGS AG (ACAG) announces its first-quarter results for 2025. The company reports progress in client solutions, robust growth in Western Europe, the Nordics, and the Americas, and a normalization of the card payment business in Türkiye.
- Revenue: Group revenues decreased by 10% to €82.6 million in Q1 2025 (Q1 2024: €91.8 million) driven by a reduction in the Turkish payment card market, mainly due to the normalisation of customer owned banking card stock levels. Our strong Turkish market share is unchanged and has been reached as a result of significant annualised growth of 52% over the last five years. Excluding the effect from the Turkish market Group revenues increased by 8%.
- Revenues from Digital Technologies and Document Lifecycle Management continued their positive trajectory, and the Western Europe, Nordics and Americas region posted robust growth, reaffirming our successful market expansion strategy.
- Business Category Performance:
- Digital Technologies revenue grew by 21.5% to €7.2 million, driven by public and private sector digital solutions implementations in Greece and Romania, integrating now services provided by our latest acquisitions LS TECH and GlobalTrust.
- Document Lifecycle Management revenue increased by 8.2% reaching €31 million due to a combination of increased document output revenues in CEE and increased distribution revenues associated with the card personalization services.
- Identity & Payment Solutions revenue decreased by 22.4% to €44.4 million mainly due to the contraction of the Turkish payment card market, driven by cyclicality and normalisation of stock levels.
The other Identity & Payment solution markets were in line with or above the previous year but could not offset the negative impact of the Turkish market. Excluding the effect from the Turkish market revenues of this category increased by 5.5%.
- Regional Segment Performance:
- Türkiye, Middle East and Africa (MEA) segment recorded revenues of €7.6m which decreased by € -14.5m or -65.6% compared to Q1 2024. This is due to lower revenues in the Turkish payment card market which are attributable to the market's current economic uncertainties and high levels of paid customer stock after several years of strong growth.
- Western Europe, Nordics and Americas (WEST) segment generated revenues of €28.7m in Q1 2025, an increase of € +2.7m or +10.5% compared to Q1 2024. This growth was mainly driven by higher sales of metal payment cards and distribution services associated with card personalization services.
- Central Eastern Europe & DACH (CEE) segment reported revenues of €51.6m in Q1 2025, a decrease of € -10.5m or -16.9% compared to the same period in 2024. This decline was primarily driven by a drop in inter-segment payment card deliveries to the Turkish market (€ -11.7m) which more than offset the growth generated by the Digital Technologies category of € +1.2m or +20.0%.
- Operating performance:
- Adjusted EBITDA decreased by 18.9% to €11.2 million, following the decrease in the top line and the reduction of gross profit. The margin reached 13.6%.
- Net profit decreased by 50.5% to €2.6 million.
- Cash flow from operating activities increased by € +3.6m in the first three months of 2025 from € -0.5m in 2024 to € +3.1m in 2025, due to a reduced pace of working capital build up: 2025
€ - 6.9m vs 2024 € - 12.3m resulting in an improvement in operating cashflow from Net working capital of € +5.4m.
- Dividend Proposal: The company will propose a dividend of €0.11 per share at the Annual General Meeting (AGM) on June 24 2025.
- Outlook 2025: We anticipate a positive trajectory for the full year 2025, albeit a subdued first half of the year.
Manolis Kontos, Vice-Chairman and CEO of AUSTRIACARD HOLDINGS AG, commented:
“The onset of 2025 has presented a more subdued landscape, largely due to the normalization of the Turkish payment card market, which has experienced remarkable annual growth of 52% over the past five years. This adjustment follows a period of elevated stock levels in the wake of COVID-19.
We recognize that our business is subject to cyclical fluctuations as we operate across diverse global markets, each characterized by unique dynamics and macroeconomic conditions. However, it is precisely this diversified approach that fuels our future growth and ensures our resilience as we move forward.
In the first quarter of this year, we witnessed significant growth in our digital technologies segment which we expect to continue throughout the year. Our holistic citizen identity solution offering is now complete and on track to generate steady recurring income.We have already contracts concluded that are in implementation in the course of 2025 and will significantly increase the contribution of Government ID solutions in our revenue mix.
Our unwavering commitment to investing in our product offerings is central to our daily operations. Soon, we will unveil an innovative product in the AI space that will significantly enhance our customer experience by streamlining the management and content processing of digitalized documents, strengthening our end-to-end solutions.
We are genuinely enthusiastic about our recently announced mid-term financial objectives and firmly believe that 2025 is poised for a positive trajectory.”
GROUP BUSINESS PERFORMANCE
Amounts and percentage rates in this interim management report were rounded, and the addition of these individual figures can therefore produce results that differ from the totals shown.
Business performance of AUSTRIACARD HOLDINGS Group as monitored by Management
The following analysis is based on the business performance as monitored by Group management with a separate presentation of Special Items which include i.a. effects from Management participation programs, foreign exchange and other valuation related effects below adjusted Profit (Loss) before tax. Starting with 2025 the Management view also includes effects from Hyperinflation Accounting for the Türkiye based entity in all positions, therefore previous year figures were adapted accordingly in the tables below.
| Business performance in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Revenues | 82.6 | 91.8 | (9.2) | -10.0% |
| Costs of material & mailing | (43.3) | (49.4) | 6.1 | -12.3% |
| Gross profit I | 39.3 | 42.4 | (3.1) | -7.4% |
| Gross margin I | 47.6% | 46.2% | 1.4% | |
| Production costs | (19.7) | (19.7) | (0.1) | 0.4% |
| Gross profit II | 19.5 | 22.7 | (3.2) | -14.0% |
| Gross margin II | 23.7% | 24.8% | -1.1% | |
| Other income | 1.2 | 0.9 | 0.3 | 33.7% |
| Selling and distribution expenses | (5.5) | (5.7) | 0.2 | -3.8% |
| Administrative expenses | (6.3) | (6.1) | (0.2) | 3.5% |
| Research and development expenses | (2.3) | (1.7) | (0.6) | 37.1% |
| Other expenses | (0.2) | (0.3) | 0.1 | -40.0% |
| + Depreciation, amortization and impairment | 4.8 | 4.0 | 0.8 | 19.5% |
| adjusted EBITDA | 11.2 | 13.8 | (2.6) | -18.9% |
| adjusted EBITDA margin | 13.6% | 15.1% | -1.5% | |
| - Depreciation, amortization and impairment | (4.8) | (4.0) | (0.8) | 19.5% |
| adjusted EBIT | 6.4 | 9.8 | (3.4) | -34.6% |
| Financial income | 0.1 | 0.1 | 0.1 | 74.7% |
| Financial expenses | (1.7) | (2.0) | 0.3 | -14.1% |
| Result from associated companies | 0.0 | 0.0 | 0.0 | n/a |
| Net finance costs | (1.6) | (1.9) | 0.3 | -18.0% |
| adjusted Profit (Loss) before tax | 4.9 | 7.9 | (3.1) | -38.6% |
| Special items | (1.4) | (1.3) | (0.1) | 10.0% |
| Profit (Loss) before tax | 3.4 | 6.6 | (3.2) | -48.2% |
| Income tax expense | (0.9) | (1.4) | 0.6 | -39.9% |
| Profit (Loss) | 2.6 | 5.2 | (2.6) | -50.5% |
| Revenues by solution category in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Identity & Payment Solutions | 44.4 | 57.2 | (12.8) | -22.4% |
| Document Lifecycle Management | 31.0 | 28.6 | 2.3 | 8.2% |
| Digital Technologies | 7.2 | 5.9 | 1.3 | 21.5% |
| Total | 82.6 | 91.8 | (9.2) | -10.0% |
In the first quarter of 2025, AUSTRIACARD HOLDINGS Group reported revenues of € 82.6m, representing a decrease of € -9.2m or -10.0% compared to the same period in 2024. The reason for this reduction is the Turkish payment card market which contracted after several years of strong growth resulting in a revenue reduction of the Identity & Payment solution category by € 12.8m or -22.4% overall. The other Identity & Payment solution markets were in line or above previous year but could not offset the negative impact from Turkish market. The Digital Technologies category recorded a strong performance, growing by +21.5% or € +1.3m, primarily driven by digitalization transformation projects for the Greek public sector and services provided by our recent acquisitions LS TECH and GlobalTrust. The Document Lifecycle Management solution also contributed positively with an increase of € +2.3m or +8.2%, due to higher printing revenues in CEE and increased postal revenues associated with the personalization services.
| Revenues by Segments in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Western Europe, Nordics, Americas | 28.7 | 25.9 | 2.7 | 10.5% |
| Central Eastern Europe & DACH | 51.6 | 62.1 | (10.5) | -16.9% |
| Türkiye / Middle East and Africa | 7.6 | 22.1 | (14.5) | -65.6% |
| Eliminations & Corporate | (5.3) | (18.4) | 13.1 | -71.2% |
| Total | 82.6 | 91.8 | (9.2) | -10.0% |
From a segment perspective, Western Europe, Nordics and Americas recorded an increase of € +2.7m or +10.5% compared to the previous year, mainly driven by higher sales of metal payment cards and postal revenues associated with personalization services. In contrast, the MEA region registered a revenue decrease of € -14.5m or -65.6%, essentially due to lower revenues in the Turkish payment card market. This reduction is attributable to the current economic uncertainties in Türkiye and to high levels of paid customer stock after several years of strong growth. This downturn also affected the Central Eastern Europe & DACH segment due to a decrease in inter-segment deliveries of payment cards to the Turkish market amounting to € 11.7m more than offsetting the growth generated in the Document Lifecycle and Digital Technologies categories. Overall, the CEE segment registered a decline of € -10.5m or -16.9% year-over-year.
Gross Profit I declined by € -3.1m compared to the same period last year, reaching € 39.3m in the first quarter. The Gross margin I increased by 1.4 percentage points to 47.6% as a result of a higher share of service-related revenues without associated Costs of Material and Mailing.
Gross Profit II decreased by € -3.2m or -14.0%, essentially in line with Gross profit I as Production costs remained at the same level as the previous year. Consequently, the Gross Margin II also decreased by -1.1 percentage points, landing at 23.7% compared to 24.8% in the same period of last year.
| Operating expenses (OPEX) in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Production costs | (19.7) | (19.7) | (0.1) | 0.4% |
| Selling and distribution expenses | (5.5) | (5.7) | 0.2 | -3.8% |
| Administrative expenses | (6.3) | (6.1) | (0.2) | 3.5% |
| Research and development expenses | (2.3) | (1.7) | (0.6) | 37.1% |
| + Depreciation, amortization and impairment | 4.8 | 4.0 | 0.8 | 19.5% |
| Total | (29.1) | (29.2) | 0.1 | -0.3% |
| Operating expenses as a percentage of Sales | 35.2% | 31.8% | 3.4% |
Operating expenses (OPEX) excluding depreciation, amortization and impairment amounted to € 29.1m in the first quarter 2025, decreasing slightly by € 0.1m compared to the comparative period in 2024. Production costs remained essentially stable at € 19.7m as increased Depreciation & amortization expense (€ +0.6m) compensated savings in personnel costs (€ -0.6m). Selling & Distribution expenses totalled to € 5.5m, down by € -0.2m due to lower transportation costs. Administrative expenses came in at € 6.3m increasing by € +0.2m or 3.5% compared to last year. Research & Development (R&D) expenses reached € 2.3m increasing by € +0.6m or 37.1% compared to the first quarter in 2024, mainly due to our continued investment in our R&D capacities to support business growth. As a percentage of revenues, OPEX increased by 3.4 percentage points to 35.2% due to the reduction in revenues.
Adjusted EBITDA decreased by € -2.6m or -18.9% from € 13.8m to € 11.2m, due to the reduction of gross profit being partially compensated by an increase in R&D subsidies included in Other income (€ +0.4m). The adjusted EBITDA margin decreased by -1.5 percentage points from 15.1% to 13.6% in Q1 2025.
Adjusted EBIT came in at € 6.4m, decreasing by € -3.4m or -34.6% compared to 2024, as a result of the reduced EBITDA and an increase in depreciation and amortization by € -0.8m, reflecting prior-year CAPEX and M&A activity.
Adjusted Profit before tax decreased by € -3.1m or -38.6% to € 4.9m as the reduction in adjusted EBIT was partially compensated by lower Net finance costs (€ +0.3m) related to lower average outstanding debt and thus resulting lower interest expenses.
| Special items in € million | included in | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Management participation programs | EBITDA | (0.8) | (1.2) | 0.4 | -33.6% |
| Foreign exchange gains | Profit before tax | 0.0 | 0.1 | (0.1) | -100.0% |
| Foreign exchange losses | Profit before tax | (0.6) | (0.2) | (0.3) | 135.4% |
| IAS 29 Hyperinflation | Profit before tax | (0.1) | 0.0 | (0.1) | -267.1% |
| Total | (1.4) | (1.3) | (0.1) | 10.0% |
Profit after tax declined by € -2.6m or -50.5% from € 5.2m to € 2.6m in Q1 2025 as lower income tax expense
(€ +0.6m) partially compensated the lower Profit before tax. Special Items came in at an expense of € 1.4m, essentially in line with Q1 2024 since lower costs for management participation programs (€ +0.4m) were offset by higher foreign exchange related expenses (€ -0.3m). The Profit after tax margin shrunk from 5.6% in the first quarter of 2024 to 3.1% in Q1 2025.
FINANCIAL POSITION
| Statement of financial position in € million | 31/03/2025 | 31/12/2024 | D '25-'24 | D '25-'24 % |
| Non-current assets | 163.6 | 165.2 | (1.6) | -1.0% |
| Current assets | 163.9 | 166.4 | (2.5) | -1.5% |
| Total assets | 327.5 | 331.6 | (4.0) | -1.2% |
| Total Equity | 127.3 | 124.8 | 2.5 | 2.0% |
| Non-current liabilities | 116.6 | 117.3 | (0.8) | -0.7% |
| Current Liabilities | 83.6 | 89.5 | (5.8) | -6.5% |
| Total Equity and Liabilities | 327.5 | 331.6 | (4.0) | -1.2% |
Total assets decreased by € 4.0m from € 331.6m as of 31 December 2024 to € 327.5m as of 31 March 2025 which is mainly related to decreases in current assets (€ -2.5m) and lower current liabilities (€ -5.8m) being partially compensated by higher total equity (€ +2.5m). The decrease in current liabilities is mainly related to the decrease in trade payables (€ -8.0m). Total equity increased by € 2.5m to € 127.3m mainly as a result of the profits generated and share-option expense recognized in the relevant reserve in equity. The equity ratio of the AUSTRIACARD HOLDINGS Group improved from 37.6% on 31 December 2024 to 38.9% on 31 March 2025.
| Net Working Capital in € million | 31/03/2025 | 31/12/2024 | D '25-'24 | D '25-'24 % |
| Inventories | 69.3 | 72.8 | (3.5) | -4.8% |
| Contract assets | 17.8 | 15.0 | 2.9 | 19.1% |
| Current income tax assets | 0.6 | 0.5 | 0.0 | 7.2% |
| Trade receivables | 43.8 | 45.3 | (1.5) | -3.4% |
| Other receivables | 13.5 | 11.1 | 2.5 | 22.4% |
| 145.0 | 144.6 | 0.4 | 0.3% | |
| Current income tax liabilities | (4.1) | (3.6) | (0.5) | 13.9% |
| Trade payables | (35.8) | (43.8) | 8.0 | -18.3% |
| Other payables | (18.1) | (17.0) | (1.1) | 6.7% |
| Contract liabilities | (8.2) | (7.2) | (1.0) | 14.5% |
| Deferred income | (1.1) | (1.8) | 0.7 | -36.9% |
| (67.4) | (73.4) | 6.0 | -8.1% | |
| Net Working Capital | 77.6 | 71.3 | 6.3 | 8.9% |
Net Working Capital increased by € 6.3m or 8.9%, from € 71.3m on 31 December 2024 to € 77.6m on 31 March 2025, mainly as a result of the decrease in trade payables (€ - 8.0m). As a percentage of revenues (12-month rolling), Net Working Capital thus increased from 19.3% to 20.3%.
| Statement of cash flows in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Cash flows from operating activities | 3.1 | (0.5) | 3.6 | -721.8% |
| Cash flows from investing activities | (2.9) | (3.8) | 0.9 | -23.6% |
| Cash flows from financing activities | (2.8) | 5.2 | (7.9) | -153.4% |
| Net increase (decrease) in cash and cash equivalents | (2.5) | 0.9 | (3.4) | -386.9% |
| Capital expenditure incl. ROU, excl. M&A (CAPEX) | (3.8) | (4.9) | 1.1 | -22.8% |
The Group’s Cash flow from operating activities increased by € +3.6m in the first three months of 2025 from
€ -0.5m in 2024 to € +3.1m in 2025 due to a reduced pace of working capital build up: 2025 € -6.9m vs 2024
€ -12.3m resulting in an improvement of operating cashflow from Net working capital of € +5.4m.
The Cash flow from investing activities came in at a net outflow of € -2.9m and related to regular investments in plant and equipment and inhouse development of software to enhance our digital solutions offering and similar operating investments.
Cash flow from financing activities came in as a net outflow of € -2.8m compared to an inflow of € +5.2m in the same period in 2024. This outflow primarily relates to interest (€ -1.5m), the implementation of the share-buy-back program (€ -0.5m), acquisition of non-controlling interests (€ -0.2m) and a net balance of loans and lease repayments (cash outflow of € -0.6m).
| Net Debt in € million | 31/03/2025 | 31/12/2024 | D '25-'24 | D '25-'24 % |
| Cash and cash equivalents | (18.9) | (21.7) | 2.8 | -13.0% |
| Loans and borrowings | 117.1 | 117.4 | (0.2) | -0.2% |
| Net Debt | 98.2 | 95.6 | 2.6 | 2.7% |
Net Debt increased by € 2.6m from € 95.6m as of 31 December 2024 to € 98.2m as of 31 March 2025. Net Debt / Adjusted EBITDA (rolling 12 months) improved from 2.0x in 1-3 2024 to 1.9x in 1-3 2025.
Financial performance indicators
| Key performance indicators in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Revenue | 82.6 | 91.8 | (9.2) | -10.0% |
| Gross profit I | 39.3 | 42.4 | (3.1) | -7.4% |
| Gross profit I margin | 47.6% | 46.2% | 1.4% | n/a |
| Gross profit II | 19.5 | 22.7 | (3.2) | -14.0% |
| Gross profit II margin | 23.7% | 24.8% | -1.1% | n/a |
| Total OPEX excluding depreciation | (29.1) | (29.2) | 0.1 | -0.3% |
| Total OPEX excluding depreciation as % on sales | -35.2% | -31.8% | -3.4% | n/a |
| adjusted EBITDA | 11.2 | 13.8 | (2.6) | -18.9% |
| adjusted EBITDA margin | 13.6% | 15.1% | -1.5% | n/a |
| adjusted EBIT | 6.4 | 9.8 | (3.4) | -34.6% |
| adjusted EBIT margin | 7.8% | 10.7% | -2.9% | n/a |
| adjusted Profit before tax | 4.9 | 7.9 | (3.1) | -38.6% |
| adjusted Profit before tax margin | 5.9% | 8.6% | -2.7% | n/a |
| adjusted Profit after tax | 4.0 | 6.5 | (2.5) | -38.3% |
| adjusted Profit after tax margin | 4.9% | 7.1% | -2.2% | n/a |
| Profit after Tax | 2.6 | 5.2 | (2.6) | -50.5% |
| Profit after Tax margin | 3.1% | 5.6% | -2.5% | n/a |
| Operating Cash Flow | 3.1 | (0.5) | 3.6 | 721.8% |
| Operating Cash Flow as % on sales | 3.8% | -0.5% | 4.3% | n/a |
| Net Equity / Total Assets (31 March vs. 31 December) | 38.9% | 37.6% | 1.2% | n/a |
| Net Working Capital as of 31 March | 77.6 | 70.7 | 6.9 | 9.8% |
| Net Working Capital as % on revenues (12 months) | 20.3% | 19.3% | 1.0% | n/a |
| Net Debt as of 31 March | 98.2 | 102.6 | (4.3) | -4.2% |
| Net Debt / adjusted EBITDA (12 months) | 1.9 | 2.0 | (0.2) | n/a |
Non-financial performance indicators
| Non-financial performance indicators | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Number of sold cards (in million) | 26.1 | 38.8 | (12.8) | -32.9% |
| Average number of employees in Full-time equivalents | 2,111 | 2,433 | (322) | -13.2% |
| Number of employees in Headcount as of 31 March | 2,377 | 2,763 | (386) | -14.0% |
REPORT ON SEGMENTS
Western Europe, Nordics, Americas
| Business performance in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Revenues | 28.7 | 25.9 | 2.7 | 10.5% |
| Costs of material & mailing | (15.8) | (12.9) | (2.9) | 22.8% |
| Gross profit I | 12.8 | 13.1 | (0.2) | -1.7% |
| Gross margin I | 44.8% | 50.3% | -5.5% | |
| Production costs | (5.9) | (5.5) | (0.3) | 6.3% |
| Gross profit II | 7.0 | 7.5 | (0.6) | -7.5% |
| Gross margin II | 24.3% | 29.0% | -4.7% | |
| Other income | 0.0 | 0.0 | 0.0 | 58.7% |
| Selling and distribution expenses | (2.0) | (2.0) | 0.0 | -0.5% |
| Administrative expenses | (2.0) | (1.6) | (0.4) | 23.2% |
| Research and development expenses | (0.1) | (0.2) | 0.0 | -17.1% |
| Other expenses | (0.0) | (0.0) | (0.0) | 745.3% |
| + Depreciation, amortization & impairment | 1.8 | 1.4 | 0.3 | 21.6% |
| adjusted EBITDA | 4.5 | 5.1 | (0.6) | -11.7% |
| adjusted EBITDA margin | 15.7% | 19.7% | -4.0% | |
| - Depreciation, amortization & impairment | (1.8) | (1.4) | (0.3) | 21.6% |
| adjusted EBIT | 2.7 | 3.7 | (0.9) | -24.9% |
The Western Europe, Nordics and Americas (WEST) segment generated revenues of € 28.7m in Q1 2025, an increase of € +2.7m or +10.5% compared to Q1 2024. This growth was mainly driven by higher sales of metal payment cards and postal revenues associated with personalization services.
Gross Profit I decreased by € -0.2m or -1.7%, from € 13.1m to € 12.8m in Q1 2025, mainly due to a different sales mix and lower revenues from personalization services (€ -0.5m). As a result, Gross Margin I was reduced by -5.5 percentage points to 44.8%.
Gross Profit II decreased by € -0.6m or -7.5%, from € 7.5m to € 7.0m as a result of the reduced Gross profit I and higher depreciation and amortization costs (€ -0.3m) related to Production costs. Gross Margin II thus decreased by
-4.7 percentage points to 24.3%.
| Operating expenses excl. D, A & I (OPEX) in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Production costs | (5.9) | (5.5) | (0.3) | 6.3% |
| Selling and distribution expenses | (2.0) | (2.0) | 0.0 | -0.5% |
| Administrative expenses | (2.0) | (1.6) | (0.4) | 23.2% |
| Research and development expenses | (0.1) | (0.2) | 0.0 | -17.1% |
| + Depreciation, amortization & impairment | 1.8 | 1.4 | 0.3 | 21.6% |
| Total | (8.3) | (8.0) | (0.4) | 4.8% |
| Operating expenses as a percentage of revenues | 29.1% | 30.7% | -1.6% |
OPEX increased by € +0.4m to € 8.3m in Q1 2025 compared to the same period in 2024 as a result of higher personnel and third-party expenses related in the Administrative function. Despite the increase in absolute terms, OPEX as a percentage of revenues decreased from 30.7% to 29.1%.
Adjusted EBITDA decreased by € -0.6m or -11.7% to € 4.5m, while adjusted EBIT decreased by € -0.9m or -24.9% to € 2.7m, primarily due to lower gross profit and higher depreciation and amortization.
Central Eastern Europe & DACH
| Business performance in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Revenues | 51.6 | 62.1 | (10.5) | -16.9% |
| Costs of material & mailing | (27.5) | (34.8) | 7.3 | -21.0% |
| Gross profit I | 24.2 | 27.4 | (3.2) | -11.8% |
| Gross margin I | 46.8% | 44.1% | 2.7% | |
| Production costs | (12.4) | (12.9) | 0.5 | -3.9% |
| Gross profit II | 11.8 | 14.5 | (2.7) | -18.9% |
| Gross margin II | 22.8% | 23.3% | -0.5% | |
| Other income | 1.2 | 0.9 | 0.3 | 35.9% |
| Selling and distribution expenses | (3.0) | (3.2) | 0.2 | -6.4% |
| Administrative expenses | (3.9) | (4.9) | 1.1 | -21.6% |
| Research and development expenses | (1.9) | (1.4) | (0.5) | 31.5% |
| Other expenses | (0.2) | (0.2) | 0.1 | -35.6% |
| + Depreciation, amortization and impairment | 2.8 | 2.5 | 0.3 | 12.8% |
| adjusted EBITDA | 6.8 | 8.0 | (1.2) | -15.0% |
| adjusted EBITDA margin | 13.2% | 12.9% | 0.3% | |
| - Depreciation, amortization and impairment | (2.8) | (2.5) | (0.3) | 12.8% |
| adjusted EBIT | 4.0 | 5.5 | (1.5) | -27.4% |
The Central Eastern Europe & DACH (CEE) segment reported revenues of € 51.6m in Q1 2025, a decrease of € -10.5m or -16.9% compared to the same period in 2024. This decline was primarily driven by a drop in inter-segment payment card deliveries to the Turkish market (€ -11.7m) which more than offset the growth generated by the Digital Technologies category of € +1.2m or +20.0%.
Gross Profit I declined by € -3.2m or -11.8% due to the reduction in revenues while Gross Margin I increased from 44.1% to 46.8% as a result of a higher share of service-related revenues without associated Costs of Material and Mailing.
Gross Profit II decreased by € -2.7m or -18.9% from € 14.5m to € 11.8m due to the reduced Gross profit I which was partially compensated by lower Productions costs (€ +0.5m). Gross Margin II decreased by -0.5 percentage points from 23.3% to 22.8%.
| Operating expenses excl. D, A & I (OPEX) in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Production costs | (12.4) | (12.9) | 0.5 | -3.9% |
| Selling and distribution expenses | (3.0) | (3.2) | 0.2 | -6.4% |
| Administrative expenses | (3.9) | (4.9) | 1.1 | -21.6% |
| Research and development expenses | (1.9) | (1.4) | (0.5) | 31.5% |
| + Depreciation, amortization and impairment | 2.8 | 2.5 | 0.3 | 12.8% |
| Total | (18.4) | (20.0) | 1.6 | -8.2% |
| Operating expenses as a percentage of revenues | 35.6% | 32.2% | 3.4% |
OPEX decreased by € -1.6m or -8.2% to € 18.4m in Q1 2025, primarily driven by lower personnel expenses in the Production, Selling and Administrative functions. R&D expenses increased by € +0.5m reflecting our increased focus and investment in this function. Operating expenses as a percentage of revenues increased from 32.2% to 35.6% due to reduction in segment revenues.
Adjusted EBITDA decreased by € 1.2m or -15.0% to € 6.8m while adjusted EBIT decreased by € 1.5m or -27.4% to € 4.0m, essentially as a result of the reduction in revenues and gross profit.
Türkiye / Middle East and Africa
| Business performance in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 % |
| Revenues | 7.6 | 22.1 | (14.5) | -65.6% |
| Costs of material & mailing | (5.0) | (18.7) | 13.7 | -73.3% |
| Gross profit I | 2.6 | 3.5 | (0.8) | -24.2% |
| Gross margin I | 34.5% | 15.6% | 18.8% | |
| Production costs | (1.5) | (1.2) | (0.2) | 18.2% |
| Gross profit II | 1.1 | 2.2 | (1.1) | -48.1% |
| Gross margin II | 15.1% | 10.0% | 5.1% | |
| Other income | 0.0 | 0.0 | (0.0) | -100.0% |
| Selling and distribution expenses | (0.4) | (0.4) | 0.0 | -0.6% |
| Administrative expenses | (0.2) | (0.1) | (0.1) | 71.4% |
| Research and development expenses | (0.3) | 0.0 | (0.3) | n/a |
| Other expenses | (0.0) | (0.0) | 0.0 | -97.2% |
| + Depreciation, amortization and impairment | 0.2 | 0.1 | 0.1 | 218.3% |
| adjusted EBITDA | 0.4 | 1.7 | (1.3) | -75.0% |
| adjusted EBITDA margin | 5.6% | 7.8% | -2.1% | |
| - Depreciation, amortization and impairment | (0.2) | (0.1) | (0.1) | 218.3% |
| adjusted EBIT | 0.2 | 1.7 | (1.4) | -86.6% |
The Türkiye, Middle East and Africa (MEA) segment recorded revenues of € 7.6m decreasing by € -14.5m or -65.6% compared to Q1 2024 which is essentially due to lower revenues in the Turkish payment card market. This reduction is attributable to the current economic uncertainties in the Turkish market and to high levels of paid customer stock after several years of strong growth.
Gross Profit I decreased by € -0.8m to € 2.6m as a result of the revenue reduction. Gross Margin I increased from 15.6% to 34.5% due to the vastly changed sales mix related to the reduction in revenues.
Gross Profit II decreased by € -1.1m or -48.1% from € 2.2m to € 1.1m as a result of the reduced Gross profit I and increase in Production costs by € -0.2m which is mainly related to increased depreciation and amortization costs
(€ 0.1m). Gross Margin II increased by +5.1 percentage points to 15.1% as a result of the vastly changed sales mix.
| Operating expenses excl. D, A & I (OPEX) in € million | 1-3 2025 | 1-3 2024 | D '25-'24 | D '25-'24 |