Strong business diversification and focus on proprietary software - Asseco's very good results for 2022
In 2022, the Asseco Group reached PLN 17.4 billion (EUR 3.7 billion) in revenues, which marked an increase by 20% versus the previous year. The sales of its proprietary products and IT services increased by 19% and exceeded PLN 13.4 billion (EUR 2.9 billion). Operating profit, after a 25% increase, amounted to PLN 1.8 billion (EUR 387 million), and net profit attributable to shareholders of the parent company went up by 8% to PLN 503 million (EUR 107 million). Asseco remained active in M&A – 16 companies joined the Group in the past year.
In 2022, non-IFRS* operating profit amounted to PLN 2.0 billion (EUR 433 million), up by 14% versus the 2021 levels. In turn, non-IFRS net profit attributable to Asseco Poland’s shareholders stood at PLN 547 million (EUR 117 million), which marked an increase by 6%. For the Asseco Group, the non-IFRS figures provide important information on its financial situation and business development.
Asseco's revenues are very well diversified. In 2022, the general business sector was responsible for 42% of sales, the banking and finance sector accounted for 33% and public institutions for 25% of total revenues. The Group recorded double-digit growth in all sectors.
Asseco strengthened its position in all geographic segments. In 2022, the foreign markets represented by the Formula Systems and Asseco International segments together accounted for 90% of the Group’s revenues. The sales of the Formula Systems segment increased by 23% to PLN 11.5 billion (EUR 2.4 billion), and operating profit by 49% to PLN 1.1 billion (EUR 242 million). After non-IFRS adjustments, the segment's operating profit stood at PLN 1.3 billion (EUR 271 million), which marked an increase of 20% versus the 2021 non-IFRS operating profit. In the Asseco International segment, revenues increased by 15% to PLN 4.2 billion (EUR 895 million), and operating profit reached PLN 407 million (EUR 87 million). Adjusted for non-IFRS, the segment's operating profit rose by 4% to PLN 465 million (EUR 99 million). The sales of the Asseco Poland segment exceeded PLN 1.7 billion (EUR 371 million), up by 10% from a year earlier, and operating profit was 5% higher at PLN 275 million (EUR 59 million).
“Despite uncertain times, we continue to consistently pursue our strategy based on the development of proprietary software and related services, as well as strong geographic, sector and product diversification. 2022 was a record year for us both in terms of sales and net profit attributable to Asseco Poland’s shareholders. The international nature of our organization and its federated structure, which leaves a great deal of autonomy and freedom of action to individual companies, allow us to compete effectively on foreign markets while maintaining the local and flexible approach so necessary for our customers. In 2022 alone, 16 companies operating on the European, Israeli and American markets joined our Group. Since our IPO on the Warsaw Stock Exchange (WSE) in 2004, the number of our acquisitions has already reached nearly 130. This brings the Asseco Group today to nearly 33,000 employees in 60 countries on 6 continents" - said Adam Góral, President of the Management Board of Asseco Poland.
Asseco's consolidated order backlog for 2023 in variable FX rates, in the areas of proprietary software and services, is currently worth PLN 9.8 billion (EUR 2.1 billion). In fixed FX rates, in which the backlog for 2022 was converted, it amounts to PLN 10 billion (EUR 2.1 billion).
"The war in Ukraine has confirmed the importance of cyber security. As a provider of solutions for public institutions and companies, we have taken an active role in securing IT systems and helping our customers adapt their infrastructure and procedures to the new realities" - explains Adam Góral. "We also have huge ambitions and far-reaching plans when it comes to the cloud solutions market. We want to be actively involved in the construction of the European cloud computing, and the establishment of Asseco Cloud in 2021 is the first step in this direction. We continue to intensively promote the paperless concept, transferring our clients' analog processes to the digital space. We also work on artificial intelligence (AI) solutions. I believe that the growing popularity of AI tools is not a fad, but the direction of development of technology, which is intended to serve humans" - added Adam Góral.
Asseco has been consistently building value for its shareholders with whom it has been sharing earned profit. This year, the Company's Management Board recommended to the General Meeting of Shareholders that a dividend of PLN 291 million (EUR 62 million) be paid for 2022, which translates into PLN 3.50 per share (EUR 0,7) and represents 58% of consolidated net profit attributable to Asseco Poland’s shareholders.
* Non-IFRS figures include adjustments for: the cost of amortization of intangible assets recognized under the combination settlement (PPA), the costs of share-based payment transactions with employees (SBP), and the revenues and costs resulting from the transactions of purchase and sales of companies (M&A) and one-off events (and tax effects associated with them).
Asseco is the largest IT company in Poland and the Central and Eastern European region. For more than 30 years it has been developing technologically advanced software for companies in key sectors of the economy. The company is present in 60 countries around the world and employs nearly 33,000 people. It has been growing organically as well as through acquisitions. Asseco’s companies are listed on the Warsaw Stock Exchange (WSE), NASDAQ and the Tel Aviv Stock Exchange.