Record-breaking revenues and dynamic growth in foreign markets – Asseco Group reports its results in the first half of 2016.
Asseco Group generated PLN 3.7bn in revenue in the first two quarters of 2016. This represents a 14% increase compared to the first 6 months of 2015. The operating profit rose by 9% year on year – it now stood at PLN 362m. Revenues from software sales and proprietary services increased by 11%, reaching PLN 3bn. Net profit attributable to parent company shareholders stood at PLN 143m at the end of June 2016.
On 24 August Asseco Group published its financial results for the first half of 2016. Its revenues totaled PLN 3.7bn, which represented an increase of 14%, compared to the same period in 2015. Revenues of the Asseco Group are characterized by a robust sector diversification: companies represent 41%, banking and finance stands at 39%, and 21% of revenues come from public administration. In the first half of 2016 foreign markets accounted for 78% of Group revenue. The company has consistently pursued a development strategy based on selling its own proprietary IT solutions. Such sales generated PLN 3bn, representing 80% of the total revenue during the reporting period.
In the first half of 2016 Asseco continued its cooperation with key customers and actively engaged in new projects. Over the past 6 months the Group signed 3742 contracts and agreements. In August 2016 the order book for this year exceeded PLN 6.9bn and was 17% higher than the previous year.
Adam Góral, CEO of Asseco Poland S.A.: We have achieved very good results and we are pleased with the record-breaking revenue growth of the Asseco Group. In particular, we welcome the growing and significant impact of our foreign subsidiaries. This is the result of our consistent development strategy within the international markets, as well as a result of building a global Polish IT company. We’re gaining international experience, yet are still actively trying to persuade more and more Polish companies to use our services and products – particularly as we can offer them unique knowledge, coming not only from our market. We’re also happy to share our experiences of development and international expansion. Efficiency and optimization of our organizational structure are areas we are constantly working on improving. Same applies to the development of new products meeting new challenges in a rapidly changing technology market.
Over the past 6 months the Asseco Group completed a number of changes concerning its operation on the Polish market. These were aimed at simplifying the organizational structure and further developing expert competence within individual companies in the Group. The merger of Asseco Poland with Infovide-Matrix, and the transfer of infrastructure business to Asseco Data Systems are cases in point. Extra teams were also added to DahliaMatic, specializing in IT services in the area of application software for third parties. As a result, the Asseco Group operates under a new organizational structure on the Polish market from 1 July 2016. Asseco Poland, Asseco Business Solutions, Asseco Data Systems and DahliaMatic form its core. Each company specializes in clearly defined business areas that complement each other.
Foreign companies within the Group carried out a number of successful acquisitions in the first half of 2016. In Israel, Formula Systems has strengthened its expertise within the defense sector by acquiring a 50% stake in a company called TSG; whereas Sapiens took over Maximum Processing, a company acting in the non-life and accident insurance sector in the United States. In addition, the Israeli company Magic Software has acquired a majority stake in Roshtov Software Industries, which owns a development platform for health care institutions. The high revenue growth within the Central European market is not only the result of organic growth, but also stems from last year's acquisitions within the IT infrastructure and integration segment. Asseco South Eastern Europe (ASEE) took over Chip Card and thus increased its competence in the rapidly growing area of payments.
Asseco Group’s development strategy focuses on the core business – creation of innovative software for companies and institutions – as well as further international expansion, and building a competitive advantage based on strengthening its sectoral competences.