HPS continues its strategic transition to a SaaS business model, with the ambition of strengthening revenue recurrence and profitability.
If this transformation results in a reduction in revenues in the short term (through the absence of license sales), it aims to consolidate a more predictable revenue base that generates value in the long term.
As part of this transformation, HPS recorded, during the first nine months of 2024, an increase of +3.6% in its consolidated revenues compared to the end of September 2023 (+2.1% on a comparable basis). Recurring revenues, up +8.9%, now represent 74% of total revenues, compared to 70% in 2023, reflecting the first effects of this strategic development.
Finalization of the acquisition of CR2 and integration within the HPS Group
During the 3rd quarter of 2024, the HPS Group finalized the acquisition of CR2, an international player recognized for its digital banking and electronic payments solutions, in particular its BankWorld software suite, which allows banks to improve the customer experience while reducing operational costs. With more than 90 client banks in 50 countries, CR2 brings complementary expertise and a value proposition aligned with HPS strategy.
This acquisition, integrated as part of our external growth program, will play a key role in accelerating our transition to a model based on regular and recurring revenues, while strengthening our positioning in the global electronic payments market.
Investments
Alongside the acquisition of CR2, the investments made by the HPS Group at the end of September 2024 focused on equipment and regular fitting out of premises, particularly as part of the openings of new entities (India, Canada and Australia).
Debt
At the end of September 2024, the Group’s debt amounted to 455 MMAD, compared to 116 MMAD at the end of 2023, following the financing of external growth as part of the acquisition of CR2. At the same time, HPS maintained proactive management of its balance sheet balances during the quarter, with cash flow up significantly by 23.3%, reaching 260 MMAD.
Perspectives
In the 3rd quarter of 2024, the HPS Group’s results remain in line with those of the 1st half, confirming performance in line with expectations for the financial year. The Group anticipates revenue growth of between +2% and +5% for 2024. This trajectory is part of an accelerated strategic transformation towards the SaaS model, an evolution which, although temporarily affecting financial performance in the short term, strengthens revenue recurrence and competitiveness in the long term.
The implementation of the operational and technological levers of the AccelR8 plan, combined with the deployment of our external growth strategy, continues to produce promising results.
The acquisition of CR2, with its extensive geographic coverage and recognized expertise in digital banking with more than 90 banks worldwide, represents a catalyst for significant synergies and an engine for future growth. Its contribution should represent, in 2025, a turnover of nearly 30 million euros.
The signatures of new contracts in 2024, notably a SaaS contract with one of the largest banking groups in Australia, illustrate the potential of our solutions and our dynamic of conquering new markets. This progression is supported by the opening of new international entities, particularly in India and Australia, strengthening our global footprint.
The HPS Group remains firmly committed to achieving its strategic objectives, while consolidating its position among the world leaders in payment solutions. We remain focused on our ability to generate sustainable and profitable growth, in line with our long-term vision.
