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Stable growth in volatile business environment - Asseco summarizes Q1 2023

In the first quarter of 2023, Asseco generated revenues of PLN 4.3 billion (EUR 922 million), which marks an increase of 7% versus the corresponding period in 2022. The sale of proprietary products and IT services went up, compared to the first three months of the previous year, by 8% and amounted to PLN 3.4 billion (EUR 728 million). Operating profit rose 3% to PLN 398 million (EUR 85 million), and net profit attributable to shareholders of the parent company was at a comparable year-on-year level at PLN 108 million (EUR 23 million).

In Q1 2023, the Asseco Group generated PLN 494 million (EUR 105 million) in non-IFRS* operating profit, up 3% year-on-year. In turn, non-IFRS net profit attributable to Asseco Poland's shareholders was at a similar level to the previous year, amounting to PLN 120 million (EUR 26 million). For the Asseco Group, the non-IFRS figures provide important information on its financial position, as well as for assessing the development of its business.

Consistent business diversification

Asseco's revenues remain very well diversified by sectors. In Q1 2023, they were distributed as follows: general business - 44%, banking and finance - 33% and public institutions - 23%. The Group recorded sales increases in each of these areas. The public institutions sector grew the strongest, by 10%, while banking and finance by 7%, and the general business sector by 5%.

During the reporting period, Asseco expanded its operations both in Poland and abroad. Sales revenues in the Asseco Poland segment increased by 12% and amounted to PLN 457 million (EUR 97 million). Foreign markets represented by the Formula Systems and Asseco International segments accounted for 90% of the Asseco Group's total revenues in Q1 2023. The revenues of the Asseco International segment were 5% higher than in the corresponding period a year ago, amounting to PLN 988 million (EUR 210 million). The Formula Systems segment, in turn, recorded PLN 2.9 billion (EUR 618 million) in revenues, which marks an increase of 7% versus Q1 2022.

Security and financial stability

Asseco's consolidated order backlog for 2023 in variable FX rates, in the area of proprietary software and services, is now worth PLN 11.2 billion (EUR 2.4 billion). In turn, in fixed FX rates, it totals PLN 11.7 billion (EUR 2.5 billion) and is 4% higher than in the same period last year.

"Strong business diversification at the level of products, sectors and geographic markets, as well as long-term customer relationships and a high proportion of recurring revenues provide the Asseco Group with security and financial stability in the volatile business environment in which we currently operate. Taking into account only organic growth, sales growth in fixed exchange rates reached 8% in the first quarter of 2023, which is a similar level to the one recorded during the first three months of 2022. We observed continued sales growth in all segments. Revenue growth was highest in the Asseco Poland segment. We achieved very good sales performance in Poland in the banking and finance, healthcare, energy and telecommunications sectors. We also recorded double-digit sales growth in Asseco Data Systems and Asseco Cloud. The Formula Systems Group continued strengthening its position in Israel, North America and Europe. The first three months of 2023 were also very good for the Asseco Enterprise Solutions Group, from the Asseco International segment, which intensively developed sales of ERP solutions, and the Asseco South Eastern Europe Group, which increased its scale of operations in all business segments" - said Karolina Rzońca-Bajorek, Vice President, CFO of Asseco Poland.



* 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 and one-off events (and related tax effects).