Asseco Group records dynamic growth abroad and nearly PLN 8bn in revenues in 2016
Asseco Group ended 2016 with its highest sales to date and a record-high operating profit. Group revenues rose to over PLN 7.9bn, which represents a 9% increase year-on-year. Operating profit increased by 3% and reached PLN 769m. Group activities in foreign markets grew significantly in 2016 – recording 79% of total sales. Revenues from software development and proprietary services, both crucial for the Company, amounted to PLN 6.4bn, which translates to a 10% increase year-on-year.
2016 saw Asseco Group achieve record-high sales revenue of nearly PLN 8bn, and a 3% increase in operating profit which now stands at PLN 769m. Some of the elements contributing to such an intense growth were successful foreign investments, a highly diversified client portfolio, and continuous development of our proprietary products and services.
Dynamic growth in foreign markets had the biggest impact on the Group results in 2016. Foreign companies’ share in the Group's total revenue increased to 79% (PLN 6.3bn). Year-on-year, this represents an increase of PLN 804m. Moreover, foreign companies generated PLN 511m operating profit, which represents an increase of PLN 44m year-on-year.
Sales of proprietary software are instrumental to record-high results. Revenue within this category now stands at PLN 6.4bn, which represents a 10% increase year-on-year and accounts for over 80% of total sales. Group revenues are well diversified, both geographically and in terms of sectors. Business sector has the largest share of sales – it accounts for 39% of the total Group revenue. Banking and finance accounts for 39%; and the public sector accounts for 22% of total sales. The Group's order portfolio revenue rose by 10% year-on-year and now stands at PLN 5.5bn.
Adam Góral, President of the Board at Asseco Poland: It was a great year for the Asseco Group. We are currently operating on a scale unprecedented for Polish IT companies. We have achieved record-high revenues of nearly PLN 8bn, and an operating profit which stands at PLN 769m. We employ approximately 22 thousand people in over 50 countries around the world. Foreign markets account for 79% of our revenues. We implemented a Group reorganization plan in Poland in 2016. In addition, we continued to grow the Group through acquisition of new entities and increasing our stake in subsidiaries. Over the past 12 months we have further developed our international centers of competence in the areas of ERP, payments, and insurance. We intend to continue these activities in 2017 as well.
Asseco Poland is consistently building value for its shareholders. This year the Management Board recommended to pay out a similarly high dividend to the one paid out in 2015.
Adam Góral: Excellent financial results and a strong development perspective for the future allowed us to, yet again, recommend a high dividend payout. PLN 250m will be allocated to this end in 2017. Asseco has consistently shared revenues with its shareholders and paid dividends to the tune of over PLN 1.4bn.
The dividend recommended by the Management Board translates to PLN 3.01 per share, which in turn means a dividend yield of 5.6% (correct as of the end of 2016).