Frequentis: Order intake of half a billion euros for the first time
Frequentis has reported a significant growth in its financial metrics for the fiscal year, with revenues surging by 10.8% to EUR 427.5 million. The Air Traffic Management segment spearheaded this growth with an increase of approximately 14%, while the Public Safety & Transport segment also contributed with a rise of nearly 5%. Geographically, Europe remains the dominant revenue generator, accounting for 66% of the total revenues, followed by the Americas at 16%, Asia at 11%, and Australia/Pacific/Africa at 7%. Concurrently, the order intake experienced a remarkable surge of 24.7%, reaching EUR 505 million. Despite the challenges posed by higher inflation impacting supplier costs and wage increments, the EBIT improved to EUR 27 million, marking a robust performance.
Global Recognition and Contributions
Frequentis’ unwavering commitment to excellence and innovation has garnered substantial orders from diverse regions across the globe. Noteworthy contracts include the Enterprise Network Service system delivery for Verizon/FAA in the USA, a voice communication system for Canada’s air navigation service provider, a nationwide rail network communication system in France, and an emergency rescue and medical on-call services communication system in Norway. These achievements underline the company’s international reputation and the effectiveness of its solutions in addressing critical safety and communication needs.
Research & development for a safer world
Recognizing the escalating global demand for safety and mobility, Frequentis continues to prioritize investment in cutting-edge products and technologies. In 2023, the company allocated approximately 6% of its revenues to company-funded R&D initiatives. These investments have facilitated the development of innovative solutions such as aeronautical information systems for drone management, digital towers, and network technology applications in safety-critical sectors. Several of these products, including the digital traffic management system for Austro Control Dronespace and the drone-controlled inspection system for the Austrian rail network (ÖBB), are already operational, demonstrating Frequentis’ forward-thinking approach.
5 years on the stock exchange, 9 acquisitions
Since its IPO in 2019, Frequentis has embarked on an ambitious acquisition spree, completing nine strategic acquisitions by the end of 2023. The focus in 2023 predominantly revolved around technology acquisitions, with the acquisition of a 76.76% stake in the German cybersecurity firm FRAFOS bolstering Frequentis’ cybersecurity capabilities. Additionally, the acquisition of the Norwegian company GuardREC expanded the company’s recording and data analytics business, enhancing its voice and flight data recording and evaluation capabilities.
Proposal to raise the dividend again, increase in equity
Frequentis’ robust financial performance is further evidenced by its proposed dividend increase for 2023. With a profit of EUR 20.0 million and earnings per share standing at EUR 1.39, the company is proposing a 9% higher dividend payout of EUR 0.24 per share. Moreover, the company’s equity has risen to EUR 155.6 million, reflecting a healthy equity ratio of 41.9%, and maintaining a strong net cash position of EUR 84.3 million.
Outlook
Looking ahead, Frequentis remains optimistic about its growth prospects for 2024, buoyed by the enduring megatrends of safety & security, mobility, and technology. The company anticipates further increases in order intake and revenues compared to 2023. However, considering the ramp-up costs associated with major projects acquired in 2023 and the prevailing inflationary pressures, the EBIT margin for 2024 is projected to be around 6%.
The current financial publications can be found at: www.frequentis.com/publications.
