Strong growth in revenues and operating earnings

• Revenues in Q3: 38 percent above previous year, quarterly EBIT increased to EUR 6.2m (Q3 2019: EUR 2.3m)
• Managing Board confirms growth targets for the full year

init innovation in traffic systems SE (ISIN DE 0005759807) reports a strong increase in revenues and operating profit in the third quarter of 2020. According to the preliminary figures now available, the digitisation specialist for public transport generated revenues of EUR 49.6m in this period, which is more than 38 per cent than in the same period last year (EUR 35.8m). At the same time, EBIT more than doubled to EUR 6.2m (Q3 2019: EUR 2.3m). "This reflects both a surge in demand for our new products to manage corona effects in public transport and the result of our previous investments in new technologies", said the Managing Board in its quarterly statement.

This trend is also reflected in the nine-month figures of the internationally leading provider of integrated planning, dispatching, telematics and ticketing solutions for buses and trams. At the end of September, revenues reached a new record level of EUR 130.9m (previous year: EUR 112.8m). Operating earnings before interest and taxes (EBIT) grew to EUR 12.4m (previous year: EUR 10.4m).

Digital innovations support transport companies during the Corona crisis

There was also a year-on-year increase in the order intake in the third quarter. It stood at EUR 31.7m (Q3 2019: EUR 19.3m). At EUR 119.2m, it was below the previous year's figure (EUR 133.4m) on a nine-month basis.

The planned signing of the contract for the Houston project (ad hoc announcement of 27 February 2020) has been postponed due to Corona. The contract is still expected to be signed this financial year. The project comprises an account-based fare management system with a contract value of well over USD 30m. With the planned order from Houston, the order intake at the reporting date would be higher than in the previous year.

We therefore still consider the target of EUR 180m - 190m to be achievable. The award of the contract for the Houston project has been taken into account. In the event of further delays, order intake could be postponed to the following year.

"Despite the negative effects of the Corona crisis that are being felt in the economy as a whole, we are on track to meet our growth targets for 2020 as a whole. We continue to expect revenues to rise to around EUR 180m and EBIT to EUR 18m to 20m" emphasises the Managing Board.

As the experience of the last six months in particular have shown, the digital innovations of init can effectively support the transportation companies to manage the effects of the COVID 19 pandemic. This applies above all to the contactless payment of tickets. With "smart ticketing" solutions from init, transportation companies can not only increase the security of their staff and passengers, but also reduce the costs of expensive cash handling and accelerate boarding procedures.

One of the biggest challenges currently facing public transport is to ensure that buses and trams are not overcrowded. This is the only way to regain passengers' confidence in the safety of bus and rail transport. With the help of MOBILEguide, a system for real-time passenger guidance during operation, init is breaking new ground here so that transport companies can ensure that their vehicles are evenly loaded.

Regulate distance - when paying, in the vehicle and at stops

An essential control tool here is the provision of the occupancy rate in the passenger information system, e.g. via apps. This enables passengers to select free capacities and, if necessary, alternative connections. MOBILEguide takes into account both real-time passenger counting data and historical data on typical boarding and alighting behaviour at the individual stops. In a unique process, which has already been patented in the USA and Europe, the expected occupancy rate, i.e. an occupancy forecast, is thus determined. This allows the passengers to see - with the highest possible accuracy - in which vehicles the most space is available.

In addition to influencing passenger behaviour, transportation companies can also intervene directly via the Intermodal Transport Control System MOBILE-ITCS from init. If the occupancy rate of a vehicle exceeds a threshold value, they are alerted by the system and can initiate planning measures such as booster rides or temporarily set a vehicle to the status "No boarding".

Furthermore, the init Managing Board sees further sustainable trends such as digitisation, electromobility, mobility as a service, and autonomous driving in public transportation as growth drivers for the future.

"The pressure to digitise has accelerated as a result of the Corona crisis among our customers worldwide. If the general economic conditions do not deteriorate significantly as a result of the COVID 19 pandemic, then the targets in our road map - continued sustainable growth of 15 percent on average per annum - are achievable," the Managing Board states in its outlook.

The complete quarterly statement will be available from 12 November 2020 on the init website under the following link www.initse.com/ende/investors/financial-reports.

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