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Stable business development of the Asseco Group during the three quarters of 2023

In the first three quarters of 2023, revenues of the Asseco Group exceeded PLN 12.6 billion (EUR 2.8 billion). Proprietary software and services accounted for 79% of this amount – nearly PLN 10 billion (EUR 2.2 billion). In turn, operating profit reached PLN 1.2 billion (EUR 255 million), and net profit attributable to shareholders of the parent company stood at PLN 344 million (EUR 75 million), out of which the Asseco Poland segment was responsible for 47%, the Asseco International segment for 39% and the Formula Systems segment for 14%.

For the assessment of the financial situation and development of the Asseco Group's business activities, the basic figures published on a non-IFRS* basis are important information. During the first nine months of 2023, the Asseco Group generated PLN 1.5 billion (EUR 317 million) in non-IFRS operating profit, putting the result at a similar level to the corresponding period last year. In turn, non-IFRS net profit attributable to Asseco shareholders amounted to PLN 384 million (EUR 84 million).

Strong diversification increases business resilience

Asseco's revenues remain very well diversified geographically and by sectors. Geographically, foreign markets, represented by the Asseco International and Formula Systems segments, accounted for 89% and Poland for 11% of the Group’s revenues. By sectors, sales were distributed as follows: general business – 42%, finance and banking – 34%, and public institutions – 24%.

Revenues in the Asseco Poland segment increased by 12% during the reporting period and exceeded PLN 1.4 billion (EUR 309 million). The parent company recorded double-digit growth in the areas of finance and banking, healthcare, energy and telecommunications. Asseco Data Systems and Asseco Cloud, which operate on the Polish market, achieved very good sales results. The Formula Systems segment reported revenues of PLN 8.3 billion (EUR 1.8 billion) which were significantly affected by changes in currency exchange rates. Organic revenue growth in fixed exchange rates was 7%. In turn, the Asseco International segment generated revenues of PLN 2.9 billion (EUR 631 million). During the period in question, dynamic increases in ERP sales were recorded in Poland, the Czech Republic, Germany and Austria. Operating in the Southeastern Europe region, the Asseco South Eastern Europe Group generated double-digit revenue increases in the banking and dedicated solutions segments.

“Strong sector, product and geographic diversification allows us to operate effectively in a volatile market environment. The Asseco Group's financial performance in the first three quarters of 2023 was significantly affected by changes in foreign exchange rates. Organically, the business grew steadily - Asseco's revenue growth in fixed exchange rates was 6%. When we compare operating profit on a non-IFRS basis, net of one-off events, with the corresponding period last year, it is very similar” - said Karolina Rzońca-Bajorek, Vice President, CFO of Asseco Poland.

Asseco's consolidated order backlog for 2023 in variable rates, in the area of proprietary software and services, is currently worth PLN 12.5 billion (EUR 2.8 billion). Meanwhile, in fixed exchange rates, it amounts to PLN 13.6 billion (EUR 2.9 billion), 5% higher than in the corresponding period in the previous year.

Successful share buyback

In the third quarter of 2023, Asseco Poland conducted a successful buyback of its shares, with a total value of PLN 1.2 billion (EUR 257 million). A total of 14.8 million shares were acquired. Its goal is to ultimately increase the liquidity of Asseco's shares listed on the Warsaw Stock Exchange (WSE).

* The non-IFRS recognition includes adjustments for the cost of amortization of intangible assets recognized in purchase price allocation (PPA), the costs of share-based payment transactions with employees (SBP), the revenues and costs related to company acquisitions/sales (M&A) and one-off events (and related tax effects).