Asseco after the first half of 2020 - very good results and stronger position in all business segments
In the first half of 2020, Asseco generated PLN 5.8 billion in sales revenues, which is 16% more than in the corresponding period in the previous year. The Group's sales of proprietary IT products and services reached PLN 4.7 billion and thus accounted for 81% of total revenues. After a 22% growth, consolidated operating profit amounted to PLN 554 million. Net profit attributable to shareholders of the parent company increased by 11% to PLN 177 million. The Group improved revenues and profits in all operating segments.
For the assessment of the financial and business situation of Asseco, basic figures published on a non-IFRS basis are essential information. They are complementary to the figures reported in accordance with the IFRS* standard. In the first half of this year, the non-IFRS operating profit amounted to PLN 675 million and was 20% higher, while the non-IFRS net profit amounted to PLN 201 million, after an increase of 12%.
Thanks to a consistently implemented development strategy, the Group improved its results in all business segments. In the Formula Systems segment sales increased during the first 6 months of 2020 by 19% to PLN 3.6 billion and operating profit by 34% to PLN 287 million. Sales in the Asseco International segment increased by 12% to PLN 1.5 billion and operating profit increased by 14% to PLN 173 million. In the Asseco Poland segment revenues amounted to PLN 639 million, which is 6% more than in the corresponding period in the previous year, while operating profit was 8% higher and reached PLN 95 million. Foreign markets represented by the Formula Systems and Asseco International Segments jointly accounted for 89% of the Group's total revenues.
Asseco's revenues are very well diversified by sectors. In the first half of 2020, the revenues were distributed as follows: general business - 39%, banking and finance - 37% and public institutions - 24%.
In the second quarter of 2020 alone, the Group recorded PLN 2.9 billion of sales revenues, marking an increase of 12%. Operating profit went up by 33% to PLN 303 million, and net profit attributable to the shareholders of the parent company amounted to PLN 95 million, i.e. 19% more than in the second quarter of 2019.
Our strategy, based on strong geographical, sector and product diversification of business, brings measurable results and allows us to maintain very good financial results even in such a difficult period as the ongoing pandemic worldwide. We are currently implementing our contractual obligations in a new business model. We are observing an increase in demand for digital products and services, enabling remote functioning and customer service. At the same time, despite the fact that we see a certain caution on the market in undertaking new investment projects, our backlog is growing at a double-digit rate in all operating segments - at the Group level it is 13% higher than the order book presented in August 2019 and currently amounts to PLN 10.3 billion, said Rafał Kozłowski, Vice-President of the Management Board of Asseco Poland.
* The 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), the costs and financial revenues resulting from the transactions of purchase and sales of companies (M&A) and tax effects associated with them.