EQS-News: init SE anticipates another record year

• After winning two major contracts in the first quarter of 2024, order backlog grows to EUR 384m (previous year: EUR 195m)
• Shareholders’ meeting approves dividend increase to EUR 0.70 per share
• Managing Board member Dr. Jürgen Greschner and Chairman of the Supervisory Board Hans-Joachim Rühlig step down

init innovation in traffic systems SE (ISIN DE 0005759807) expects another record year ahead and is forecasting growth of 10 to 15 per cent in the coming years. As an indication, after winning two major contracts, the order intake swelled to EUR 256.1m in the first quarter of 2024 (Q1 2023: EUR 69.5 m). At today’s shareholders’ meeting of the global leader in digital transformation solutions for buses and trains, the shareholders applauded this growth trajectory. Proposals for the appropriation of profits and an increase in the regular dividend to EUR 0.70 per share were also passed with a large majority.

The Managing Board and Supervisory Board justified the proposed dividend with the solid profit generated by the company in 2023 and the future prospects as a provider of integrated planning, dispatch, telematics and ticketing solutions for public transport. At the end of the first quarter init’s order backlog amounted to EUR 384m (previous year: EUR 195 m). On this basis, the Managing Board anticipates double-digit growth in revenue to between EUR 240m and 260m (2023: EUR 211 m). EBIT should therefore amount to between EUR 24m and 28m (2023: EUR 21 m).

Megatrend towards sustainable investment drives init growth

“We are benefiting from the global megatrend towards sustainable investment in the digital transformation of the public transport sector. As the recognised technology leader in this area, with a large and stable customer base, there is also further up-selling and cross-selling potential for our software solutions and hardware components. We therefore also see positive opportunities to increase our double-digit EBIT margin,” said Dr. Gottfried Greschner in his report to the shareholders.

For the shareholders, this is reflected not only in higher dividends, but also in a rapid rise in the price of init stock, which has grown by more than 30 per cent in the last six months to today EUR 40.00. Analysts currently see further growth potential for the share to reach beyond the EUR 50.00 mark. Dr. Gottfried Greschner and the CFO, Dr. Marco Ferber’s announcements were met with applause by the shareholders.

The shareholders also paid tribute to two people who have played a key role in the success of the company over the past decades and who were attending the shareholders’ meeting for the last time: Chief Sales Director and Deputy Chairman of the Managing Board, Dr. Jürgen Greschner, and the Chairman of the Supervisory Board, Mr. Hans-Joachim Rühlig, both of whom are stepping down from their respective board positions at their own volition.

“Dr. Jürgen Greschner has been responsible for sales since 2004 and has played a decisive role in the successful internationalization of init. As Managing Director, he established INIT Innovations in Transportation, Inc. in the USA in 1999, which is now one of the main pillars of our company. Most recently, under his leadership, init won the largest single contract in its corporate history. Under Dr. Jürgen Greschner’s leadership, init broke into the global market and now has locations in 14 countries on 4 continents. We owe him a great debt of gratitude and are very happy that he intends to remain actively involved in operations in a managerial position to assist the sales function,” said Dr. Gottfried Greschner in recognition of Dr. Jürgen Greschner’s achievements.

init share price has more than doubled

Dr. Gottfried Greschner, init’s founder, then moved on to thank Hans-Joachim Rühlig for his work on the Supervisory Board. During Mr. Rühlig’s term as Chairman of the Supervisory Board, many key strategic decisions were made which set init on its successful trajectory, whose implementation he then constructively monitored. As examples, Greschner cited the founding of new subsidiaries and corporate acquisitions such as the DResearch Fahrzeugelektronik Group, inola in Austria and Mattersoft in Finland.

“Dear Hans-Joachim, I would like to thank you on behalf of the entire Managing Board and the shareholders represented here today for your wonderfully collaborative work, your corporate governance input, your far-reaching vision for key decisions and, most of all, your fantastic leadership of the Supervisory Board. In this time, init has more than doubled its revenue, headcount and share price,” concluded Greschner. “init innovation in traffic systems SE has become a very stable stock with extraordinarily good growth perspectives. We intend to maintain this successful course in the future.”

Continued success with AI-based software

According to Gottfried Greschner, the increasing use of AI-based software is an important driver of this trend. “With AI, public transport operators can generate substantial productivity and quality gains. At the same time, AI is helping to make public transport safer, more efficient and more climate-friendly.”

init has been using AI to optimise its processes for the planning and dispatching of transport fleets for many years now. Among other things, this enables improved departure forecasts, optimal route planning and fast responses to current events, such as accidents or traffic jams. In a pilot project led by init and Golden Gate Bridge, Highway and Transportation District that was set up in the highly congested city of San Francisco, an AI-based software solution significantly improved the reliability of departure forecasts from 49 per cent to 85 per cent. Another area of application is the analysis and forecasting of vehicle occupancy rates to provide passengers with better information, via apps on their smartphones, for example.

MOBILE-FLEX from init, an integrated booking, dispatch and optimisation solution for on-demand services, is another example of the use of AI in public transport. An AI-based optimisation algorithm links passenger requests in an efficient and easy-to-use manner, allowing shorter booking times based on real-time vehicle positions. Smaller and more economical vehicles means fewer but better utilized trips, creating a win-win situation for both public transport operators and passengers.

Another major challenge for public transport systems is the shortage of skilled workers. init’s MOBILE-PERDIS nextGen application creates the best duty rosters for drivers or transport operators on the basis of their individual wants and needs and can be continuously updated. This not only increases flexibility but also staff satisfaction among drivers which are a scarce resource. In this way, it also counters the problem of driver shortages for public transport operations. This avoids restricted availability for fixed route services, low fare receipts and disgruntled passengers. “There are also major global growth opportunities for these solutions,” states the Chairman of the Managing Board in his outlook.

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