HPS reports a loss in the first half of the year

HPS reported a net loss of -47 million MAD in the first half of 2025, compared to a net profit of 40 million MAD in the first half of 2024, marking a decline of 87 million MAD. This change is primarily due to non-operational impacts totaling -63 million MAD, which include: - Foreign exchange effects of -25.5 million MAD, consisting of -15.5 million MAD in realized losses and -10 million MAD in provisions. This impact is not expected to recur if currencies remain stable. - Financial charges of -14.6 million MAD related to the financing of the acquisition of CR2. - Goodwill amortization of -23.4 million MAD, also linked to the acquisition of CR2. Excluding these impacts, the underlying profitability remains strong, supported by rigorous cost management and resilient operational performance. With an expected rebound in EBITDA in the second half of the year and assuming stable currencies compared to the first half, the net result is projected to return to significant growth for the entirety of 2025 compared to 2024. CR2, now fully consolidated in 2025, reported a revenue decline of -18.5% in the first half of 2025 (or -16.2% excluding foreign exchange effects), primarily due to delays in signing new contracts. Strict cost control, with operating expenses reduced by -16.1%, helped limit the impact of declining revenues on EBITDA, which fell from +1 million MAD in the first half of 2024 to -2.7 million MAD in the first half of 2025. This gap is expected to be closed in the second half of 2025 with the signing of delayed contracts from the first half and the ramp-up of ongoing projects, allowing CR2 to realign with expected forecasts. In line with its strategic plan AccelR8, HPS announced in September 2025 the signing of an agreement to sell its Testing activity to Synanto. This divestiture is part of the Group's strategy to concentrate its resources on its core business, payments, which offers better growth and margin prospects. The Testing activity, which has been declining for several years and characterized by low margins, was weighing on the Group's consolidated performance. Its sale will therefore have a mechanically positive impact on future revenue growth and margins, reinforcing HPS's trajectory of profitable growth. Despite the impact of the dollar's decline and effects related to the transition to the SaaS model, HPS reaffirms its objectives for 2025: a 20% growth in revenue and a 30% growth in EBITDA. The strength of these prospects relies on a key element: the majority of expected revenue in the second half will come from recurring activities and contracts already secured in the backlog. Several levers support this trajectory: - The deployment of major on-premise projects signed in the last three months, generating immediate revenue with strong incremental margins. - The recognition of initial revenues from major SaaS projects won over the past three years and now in production. - Continued efforts to control costs. These various factors enable HPS to approach the end of the year with confidence, confirming its ability to combine growth with sustainable profitability.