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Asseco Group reports PLN 1.8 billion in revenues and PLN 186 million in operating profit for the first quarter of 2016

On 12 May 2016, Asseco Group published its financial results for the first quarter of 2016. Sales revenues reached PLN 1.8 billion, growing by 16% as compared to the corresponding period of 2015. Revenues from proprietary software and services improved by 13% to the level of PLN 1.5 billion. Operating profit amounted to PLN 186 million, while net profit attributable to shareholders of the parent company equalled PLN 66 million.

Sales of Asseco Group’s proprietary software solutions continue to grow, accounting for as much as 81% percent of our total revenues in the first quarter of 2016. The Group’s revenues are well diversified into the following sectors: general business – 40%, banking and finance – 38%, and public institutions – 22%. In the first three months of 2016, the share of our foreign operations in the revenue structure increased to 80% percent, amounting to nearly PLN 1.5 billion. During the first quarter of 2016, Asseco Group signed 2,992 contracts.

“In the first quarter of 2016, Asseco Group recorded a strong revenue growth, especially in foreign markets where we generated nearly PLN 1.5 billion or 80% of our total sales. This also translated into a higher contribution of our foreign operations to the consolidated operating profit. Whereas, the Group’s net profit was affected by the following two factors: higher financial expenses in comparison to those incurred a year ago, and the growing share of profits of our foreign subsidiaries which, due to minority interests, are not fully reflected in the Group’s bottom line,” said Rafał Kozłowski, Vice President of the Management Board of Asseco Poland.

The Group’s sales revenues for the first quarter of 2016 increased primarily in the major markets of our operations. In Poland, favourable results were achieved by Asseco Business Solutions and Asseco Data Systems. Moreover, we continued to reorganize the Group’s local business structure as well as to cooperate with our key customers. A considerable contribution to the Group’s results was provided by our Israeli companies, which maintained a high revenue growth (18% year on year) by generating more than PLN 1 billion in sales for the first three months of 2016. In Central Europe, we saw positive effects of our earlier company acquisitions, economic improvement in the Czech Republic, as well as higher sales of ERP systems. These factors brought a 48% increase in sales in relation to the comparable period last year. In the South Eastern European market, we continued to expand our payment solutions business and significantly improved our revenues in the infrastructure segment. Our Western European operations achieved a 13% increase, owing to a favourable financial impact from the acquisition of Portugal-based Exictos and organic growth in Spain.