Positive impact of the economy’s dynamic digitization on Asseco's Q1 2021 results
In the first quarter of 2021, Asseco generated over PLN 3.3 billion in sales revenues, which marked an increase by 14% versus the corresponding period in the previous year. The sales of proprietary IT products and services amounted to PLN 2.6 billion, accounting for 78% of total revenues. Consolidated operating profit increased by 29% and amounted to PLN 323 million. Net profit attributable to shareholders of the parent company amounted to PLN 102 million, which is 25% higher than in Q1 2020. The Company continued to grow organically and through acquisitions.
After three months of this year, non-IFRS operating profit amounted to PLN 399 million and was higher by 26%, while non-IFRS net profit, after a 23% increase, stood at PLN 116 million.
After Q1 2021, the Group improved performance in all operating segments. This was possible thanks to the consistently implemented growth strategy and the continued dynamic growth of digitization in all sectors of the economy. In our Formula Systems segment, sales revenues increased by 16% to PLN 2.2 billion, while operating profit improved by 31% to PLN 167 million. The Asseco International segment's sales revenues increased by 9% to PLN 819 million, while its operating profit improved by 21% to PLN 98 million. The Asseco Poland segment generated PLN 367 million in sales revenues, growing by 18% as compared with the corresponding period last year, while its operating profit improved by 38% to PLN 59 million. The foreign markets represented by the Formula Systems and Asseco International segments accounted for 89% of the Group's sales revenues.
Asseco's revenues are well diversified by sectors. After Q1 2021, they are as follows: general business - 41%, banking and finance - 34% and public institutions - 25%.
Asseco's consolidated order book for 2021 in the area of software and proprietary services is now worth PLN 8.6 billion and is 14% higher than in the same period last year.
This was a very good quarter for us. We achieved satisfactory growth of results in all segments and sectors of our operations. We consistently pursue our strategy of geographical, sectoral and product diversification of business, which brings measurable effects. The accelerated digitization of business processes in companies and institutions is no longer just a result of the pandemic, but has become a permanent development strategy for many organizations. We observe an increased interest among our customers in, among others, security and trust services and ERP solutions. This translates into an increase in our order portfolio and allows for greater optimism in achieving our goals for this year. We continue our organic growth based on sales of our proprietary software and related services, as well as through acquisitions. During the first three months of this year we were joined by four new companies, strengthening our position on international markets - said Karolina Rzońca-Bajorek, Vice President of the Management Board responsible for financial matters at Asseco Poland.
Non-IFRS figures including 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).