Hitit (HTTBT) recorded a 47% increase in sales revenue in Q3,2023. This marks an increase from the same period in the previous year, bringing the earnings to USD$ 19.1M. The company maintained a steady EBITDA margin of 40% compared to the same period last year. The company signed six new partnerships in Q3, expecting to close 2023 with revenue growth of 33-38% and an EBITDA margin of 43-48%.
09 November 2023 / ISTANBUL - Hitit (HTTBT), Türkiye's largest service exporter in the field of airline and travel technologies, achieved sales revenue of USD $19.1M in Q3, 2023. According to the balance sheet disclosed to the Public Disclosure Platform (KAP), the company increased its sales revenues by 47% in the first nine months of 2023, and its EBITDA margin was 40%, in line with the same period last year. During the nine-month period, Hitit signed six new partnership agreements and the number of passengers travelling with Hitit's technology increased by 50%.
High value-added exports are reflected on the balance sheet
Offering insights into the balance sheet, Sezer Tuğ Özmutlu, CFO at Hitit, reported that by the end of Q3, YoY the company had exceeded its 2022 figures in terms of turnover and EBITDA. Noting that EBITDA increased by 47% compared to the same period of the previous year and reached USD $7.6M, Ms. Özmutlu said, "EBITDA margin remained at 40%, consistent with the same period of the previous year. While 79% of sales were in foreign currency and 21% in TL, the international/domestic portion was 72% and 28%, respectively. This is an indication of our strong exporter structure. I would like to emphasize that we export with high added value due to the low rate of imported inputs."
Ms.Özmutlu stated that as of the end of the Q3, 2023, R&D investments of USD $6.1M and licence, hardware and fixture investments of USD $1.3M were made in connection with the projects being carried out within the framework of the Teknokent legislation, and continued as follows: “The effects of these investments in reducing our costs and increasing our revenues will be observed starting from the Q3 of this year. In this period, our company's cash and cash equivalents totalled USD $15.9M. As of the same period, we have no bank loans and financial lease obligations.”
Sharing her forward-looking expectations for the end of 2023, Ms. Özmutlu stated that as of the end of 2023, they expect a 33-38% growth in turnover in US dollar terms, a margin of 43-48% in EBITDA and a margin of 25-30% in net profit. Ms. Özmutlu said that the investment / turnover ratio is projected to be 30- 35%.
Hitit’s signature in future airline technologies.
Nevra Onursal Karaağaç, CMO at Hitit, stated that the positive results reflected on the balance sheet during the nine-month period were driven by the increase in the business volumes of existing partners as well as the newly acquired partners, and added: “As of Q3, 2023, we now serve 47 countries and 68 partners. Hitit's award-winning Crane PSS, one of the software solutions that has left its mark on the global aviation technologies sector, has garnered both global recognition and importantly trust. The strong brand perception created by Hitit and Crane internationally has enabled Hitit to sell independent solutions other than PSS. Our sales processes, which are in a state of constant acceleration, continue exponentially.”
Ms. Karaağaç emphasised that meetings and pilot projects are being carried out with different cloud providers for the development of “multi-cloud” architecture enabling synchronised multiple-cloud system operations, and added: “We produce turnkey solutions for every step of air transport. Within the ongoing Offer and Order Management System (OOMS) studies, the Hitit system and roadmap were presented to an industry consortium of 27 airline participants, that also included a number of the world's 10 largest airlines. This was at an IATA-organised workshop, and it was positively received. This shows how important a role Hitit will play in shaping future aviation trends.”
Rehabilitation of children who survived an earthquake through table tennis.
When discussing Hitit's social responsibility initiatives, Ms. Karaağaç elaborated as follows: “As we continue on our chosen path as a global technology company, we have also continued our firm commitment to social responsibility. Alongside mentoring support for women in technology and student scholarships and internships, we have tailored our “Rackets Up” social responsibility project for Türkiye's earthquake-stricken region. We have established permanent table tennis areas in container cities within the provinces primarily affected by the earthquake and we’ve started providing regular table tennis training to children who have been emotionally affected, with dedicated coaches’ careful guidence. We will continue our best to contribute to the children’s rehabilitation through sports.”