Hitit (HTTBT), the technology partner of 75 airlines across 49 countries, increased its sales revenues by 21% in Q2 2024 compared to the same period of the previous year, reaching USD$15.2 million. The company's EBITDA margin was 41%, with net cash of USD$ 10.1 million as of the end of Q2.
With a 47% increase in the number of passengers traveling through its systems in the first half of the year, Hitit's foreign currency revenues now account for approximately 80% of its total sales.
10 AUGUST 2024, İSTANBUL – Hitit (HTTBT), one of the global players in airline and travel technologies, announced its balance sheet for Q2 2024. According to the statement made to the Public Disclosure Platform (PDP), Hitit increased its sales revenues YoY by 21% as of Q2 2024 compared to Q2 2023, reaching USD$ 15.2 million. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was reported as USD$ 6.2 million, resulting in an EBITDA margin of 41%. Hitit, one of Türkiye's leading technology exporters, generated approximately 80% of its sales in foreign currencies, with 64% of its revenues coming from international Partners and 36% from domestic Partners. Having gained four new Partners in Q2 2024, the company is now the 3rd-largest airline reservation system provider in the world and the 2nd- largest in Europe, with a total of 438 employees, predominantly engineers.
Continued Investments with Strong Cash Position
Highlighting Hitit's financial strength, CFO Sezer Tuğ Özmutlu stated: ‘’As of the end of Q2 2024, our total cash and cash equivalents amounted to USD$ 10.9 million, with cash excluding lease obligations at USD$ 10.1 million. By the end of Q2, we completed USD$ 6.4 million in R&D investments and USD$ 3.4 million in licenses, hardware, and fixtures related to projects under the Teknokent legislation. The benefits of these investments, which are reducing our costs and increasing our revenues, are becoming evident as they are realized.’’
The Number of Passengers Increased by 47%
Noting that they increased the number of passengers, which forms the basis of SaaS revenues, by 47% in Q2 2024 compared to Q2 2023, Ms. Özmutlu said: “This growth was not only driven by the addition of four new Partners but also by the expanded business volumes of our existing Partners. In line with our growth strategies, we anticipate a 33% to 38% increase in turnover, a 43% to 48% EBITDA margin, and a 25% to 30% net profit margin by the end of the year. Our investment-to-turnover ratio is expected to be in the range of 30% to 35%.’’
Ranked Among the Top Three Globally, The Second Largest in Europe
Nevra Onursal Karaağaç, who has been appointed General Manager (CEO) of Hitit effective 1st September 2024, highlighted that Hitit ranks as the 3rd-largest airline reservation system provider globally and the 2nd-largest in Europe. She stated: “Our technology and software are deployed in over 700 airports. We enable our partners to exchange data with the customs and tax systems of 85 countries and provide an integrated technological network with more than 65 banking and payment systems. Partners utilizing Hitit’s infrastructure achieve an annual sales volume of USD $6.5 billion. This not only reflects Hitit’s achievements, but also underscores Türkiye’s ongoing technological progress”
Nevra Onursal Karaağaç, highlighting that Hitit is at the forefront of digital transformation in the airline and travel sectors, emphasized the company’s commitment to ongoing innovation through AI and machine learning. She noted that Hitit can offer more flexible and demand-oriented solutions rapidly compared to many established players in the industry due to its advanced technology. She added: ‘’We are dedicated to positioning Türkiye as a one of the global leaders in aviation and travel technology. Our efforts include significant investments in innovative technologies and active engagement in global sectoral dynamics through academic collaborations. For example, we have launched a field research project in Thailand in partnership with Hitit's Netherlands unit and VU Amsterdam University.
The report from this project, which analyses market trends and travel agent habits, will be completed in the next quarter. It is expected to contribute to Hitit’s growth in the Southeast Asia region by offering strategic guidance in Passenger Service Systems (PSS) and Agency Distribution Systems (ADS). With our R&D initiatives bolstered by academic research and our sales strategies driven by market dynamics and business development projects, we anticipate an increase in the number of countries and airlines we serve soon.’’
The World Leader in the IATA Airline Retailing Maturity Index
We also focus on projects that will differentiate Hitit in its field. In this regard, the Offer and Order Management System (OOMS) has been a key strategic project for us. The IATA NDC v21.3 technology standards underpin the 'Offer and Order Management with Airline Retailing' vision, marking a new era in the aviation industry established by IATA. According to the latest data regularly disclosed, we scored 34 points in this area, far surpassing our closest competitor, who scored 24 points, thus taking the leading position in the global ranking.
Creating Sustainable Value for Society
Nevra Onursal Karaağaç stated that Hitit remains committed to advancing environmental, social, and economic sustainability in alignment with the United Nations Sustainable Development Goals, with ongoing efforts to align with the aviation sector's Net Zero target. Ms. Karaağaç went on: ‘’Additionally, we continue our initiatives to support children and youth in leading healthy and fulfilling lives through sports, assist young women in pursuing careers in STEM fields through access to quality education, and contribute to gender equality in these areas.’’