HPS Reports Robust Results in 2016 Despite Global Downturn

By Yousra AcherquiCasablanca – Last week, Maroc Telecom kicked off the FY-2016 earnings season in Morocco. Earnings season continue with HPS which reported very robust results.Indeed, the leading payment software company’s Consolidated Net Income (NIGS) soared by 48.3% to MAD 59.2m (vs. MAD 39.9m one year ago). The Consolidated Net Margin stood at 12.2%, almost one point higher than in 2015. Likewise, earnings per share stood at MAD 84.1 versus MAD 56.1 one year ago, and the Board of Directors will propose the distribution of a dividend of MAD 35 per share.The strong results at the bottom-line level were driven by both rising revenues and an improvement in margins.Amid a global lackluster outturn in 2016, HPS achieved a high double-digit growth rate at the top-line level with Consolidated Revenue jumping by 37.4% to stand at MAD 485.8m (vs. MAD 450m guided by Management in 2015). This was driven by a high organic growth at 25.8% as well as by the contribution of switching activity in Morocco which started in July 2016. Recurring Revenue grew by 15%.In 2016, HPS improved their operational profitability by 1.3pts to reach an EBIT margin of 14.8%; and while maintaining Research and Development investment at MAD 37.9m (+1.3% YoY).The 2016 results release did not include management guidance figures for 2017.HPS is one of the country’s leading payment software company, providing electronic payment solutions for financial institutions, processors and national switches all around the world.HPS is present in more than 85 countries across 5 continents and has as clients some of the 100 biggest financial institutions throughout the world.

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