Loss-Making Rubean AG (FRA:R1B) Expected To Breakeven In The Medium-Term

Rubean AG (FRA:R1B), a FinTech company specializing in mobile payment acceptance systems, has experienced significant growth in recent years, despite operating at a loss. However, with a strong pipeline of potential customers and a rapidly growing market, the company is expected to achieve breakeven in the medium term.

Rubean AG's strategic partnerships, such as with Global Payments and Discover®, have contributed to its revenue growth. These partnerships have expanded the company's reach and allowed it to offer a wider range of payment schemes to its merchants. As a result, Rubean AG has seen a significant increase in its customer base and revenue.

Capital increases and convertible loans have played a crucial role in financing Rubean AG's growth and transition to profitability. The company has successfully placed capital increases and converted convertible loans into regular loans, which has provided it with the necessary funds to invest in its growth initiatives.

Rubean AG's expansion into new markets, such as Spain and LATAM, has also contributed to its revenue growth and expected breakeven point. The company has established market leadership in Germany and Spain, with over 50,000 terminals live in both countries. This has allowed Rubean AG to serve a wide range of customers, including logistic companies, retailers, hospitality companies, and banks and acquirers.

Rubean AG's product roll-out and market leadership in Germany and Spain have influenced its expansion into other countries. The company is currently in negotiations with potential customers in dozens of countries, not only in Europe but also in LATAM and the US. This strong pipeline of potential customers is expected to carry sales growth beyond 2024.

Key operational improvements and cost-cutting measures implemented by Rubean AG include optimizing its infrastructure and streamlining its processes. These measures have helped the company to reduce its costs and improve its efficiency, contributing to its expected breakeven point.

In conclusion, Rubean AG's strategic partnerships, capital increases, and expansion into new markets have contributed to its revenue growth and expected breakeven point. The company's strong pipeline of potential customers and market leadership in Germany and Spain have positioned it well for continued growth and profitability in the medium term.