Despite delivery bottlenecks in the third quarter:

init considers its 2021 forecast to be achievable

• Revenues for the first nine months at EUR 125.1m, just under 5 percent below the previous year (EUR 130.9m) and below target
• Increased procurement and personnel costs reduce quarterly profit
• Incoming orders of EUR 37.8m in Q3, 19 percent above previous year (EUR 31.7m)

The Managing Board of init innovation in traffic systems SE (ISIN DE 0005759807) continues to expect the targets set for 2021 to be achievable despite the global supply bottlenecks experienced in the third quarter. According to the preliminary figures available, the revenues of the digitisation specialist for buses and trains fell slightly, by just under 5 percent year-on-year in the first nine months to EUR 125.1m (30/09/2020: EUR 130.9m) and remained below the expectations. Increased procurement and personnel costs as well as the tense labour market situation had a negative impact on operating profit before interest and taxes (EBIT) which was also below expectations at EUR 10.5m (30/09/2020: EUR 12.4m). Against this, init recorded an increase of a solid 19 percent at EUR 37.8m in incoming orders in the third quarter (Q3 2020: EUR 31.7m).

"We are currently registering contradictory developments. On the one hand, as a globally active company, we cannot detach ourselves from the general supply bottlenecks in the short term, while on the other hand, sustainable growth factors such as advancing digitisation and new investment programmes for public transport continue to have an impact," the Managing Board reported.

Increase in orders and sustainable growth

The Managing Board sees the revenue target for 2021 of around EUR 180m within reach. It will still be a challenge to reach the lower end of the EBIT target corridor of EUR 18 to 20m. "This is an ambitious target. We expect a strong increase in the fourth quarter due to catch-up effects. Furthermore, many transport companies often place more orders in the last quarter of the year, so it is usually the strongest in terms of revenues and earnings."

In the third quarter of the 2021 financial year, init generated revenues of EUR 40.4m (Q3 2020: EUR 49.6m). The quarterly decline is due to both general economic restrictions in the global supply chains and a tense labour market. Therefore EBIT reached EUR 2.2m in the third quarter, compared with EUR 6.2m in the previous year.

On the other hand, there was a sustained increase in incoming orders. It accelerated in the third quarter with an increase of 19 percent to EUR 37.8m (Q3 2020: EUR 31.7m). At the end of September 2021, it reached EUR 138.2m (30/09/2020: EUR 119.2m). "We continue to see great growth potential in our market due to investment programmes in public transport infrastructure that have been announced and are already in the process of implementation. The extent to which we will be able to fully exploit this potential will also depend on the stability of the global supply chains and developments in the labour market," reports the init Managing Board.

The complete quarterly statement will be available on the init website from 10 November 2021.