Austriacard has released its financial results for the first quarter of 2025, with the company making progress in providing integrated applied technology solutions, significant growth in Western Europe, Scandinavia and America and normalizing Turkey’s market on payment cards.
In more detail:
Revenue: Group’s revenue fell by 10% to EUR 82.6 million in the 1st quarter 2025 (1st quarter 2024: 91.8 million euros), a development due to the retreat of the Turkish payment card market, mainly due to the normalization of high stocks in bank cards. Our strong market share in Turkey remains unchanged and has been achieved as a result of significant annual growth by 52% in the last five years. Except for Turkey’s market, the group’s revenue increased by 8%.
Revenue from digital technologies and the Document Lifecycle Management sector continued their positive career with Western Europe, Scandinavia and America to grow strong, confirming the successful geographical expansion strategy.
Performance by business sector:
Digital technologies revenue increased by 21.5% to € 7.2 million, with the main growth lever in public and private digital services in Greece and Romania, and the new services offered through recent acquisitions of LS Tech and Globaltrust.
Revenue in the Document Lifecycle Management sector increased by 8.2% and reached EUR 31 million due to the combination of increased revenue from Central and Eastern Europe and increased distribution revenue associated with card personalization services.
Revenue from the Identity & Payment Solutions sector fell 22.4% to 44.4 million euros mainly due to the reduction of the Turkish payment card market due to the circularity and normalization of high stocks. The rest of the Identity & Payment markets in the sector were at the same or higher levels as the previous year. Except for the Turkish market, sector revenue increased by 5.5%.
Performance by geographical area:
Revenue from the Turkish, Middle East and African region (ACE) amounted to EUR 7.6 million, reduced by EUR 14.5 million or -65.6% compared to the first quarter of 2024. Last years.
Revenue in the Western Europe, Scandinavian and America (West) registered EUR 28.7 million in the first quarter of 2025, increased by EUR 2.7 million or +10.5% compared to the first quarter of 2024. This increase is mainly due to higher sales of metal payments.
Revenue in the Central and Eastern Europe & Dach region (CEE) amounted to € 51.6 million in the first quarter of 2025, decreased by € 10.5 million or -16.9% compared to the same period in 2024. This decrease is mainly due to the reduction in the interdisciplinary trading of payments in the Turkish market (€11.7 million), Digital technologies were noted in the category of € 1.2 million or +20.0%.
Functional Performance:
Adapted EBITDA fell 18.9% to € 11.2 million due to revenue and gross profit reduction. EBITDA margin stood at 13.6%. Net profit decreased by 50.5% to € 2.6 million.
Operations available increased by EUR 3.6 million in the first quarter of 2025, from -0.5 million euros in EUR 2024 to +3.1 million in 2025, due to reduced capital: 2025 -6.9 million euros versus EUR 2024 -12.3 million, resulting in the improvement of operating cash flows from EUR 2024 -12.3 million.
Suggested Dividend: The company will propose a dividend of EUR 0.11 per share at the annual general meeting of shareholders on June 24, 2025.
Prospects for 2025: We expect a positive course for the whole of 2025, although the first half of the year will be reduced.
Vice -President and CEO of Austriacard Holdings AG Manolis Kontos said: “The launch of 2025 showed reduced momentum, mainly due to the normalization of the Turkish payment card market, which has presented a notable annual 52% growth over the last five years. This adaptation has a period of highly increased stocks as a result of Covid-19. We recognize that our business is subject to circular fluctuations, as we operate in different markets internationally, each of which is characterized by different dynamic and macroeconomic conditions. However, it is precisely this differentiation that triggers our future growth and ensures our resilience as we move forward. During the first quarter of this year, we have observed significant growth in our digital technologies, which we expect to continue throughout the year.
The ability to provide holistic solutions to the Citizen Identity is now completed and leads us to create constant repetitive revenue. We have already concluded contracts that are implemented in 2025 and will make a significant contribution to our revenue mix. Investments in the constant evolution of our products and services are a central element of our strategy. Soon, we will present an innovative product in the field of artificial intelligence that will significantly improve our customers’ services, such as management and processing content of digitized documents, further enhancing our integrated solutions. We focus on achieving our medium -term financial goals and believe that 2025 will evolve into a particularly positive year. “