Foreign markets are the driving force behind the development of the Asseco Group in 2017
In 2017, the Asseco Group consistently implemented its foreign investments and exports strategy, which resulted in a record net profit of PLN 467 million (by 55% more than in 2016) and nearly PLN 8 billion in revenues. The sale of a chunk of a stake in Formula Systems had a key impact on the Group's results. Consequently, Formula System's results were not consolidated in August and September, and the Group's net profit increased significantly. Last year, the Group expanded its presence intensively in foreign markets, where it generated 80% of its sales and successfully conducted new acquisitions. In 2017, the sales of proprietary software and services, which are very important for Asseco, amounted to PLN 6.2 billion.
In 2017, the Asseco Group generated PLN 7.8 billion in revenues, PLN 585 million in operating profit, and PLN 467 million in net profit. The sale of a chunk of a stake in Formula Systems had the greatest impact on the Asseco Group's financial results in 2017.
We decided to diversify our involvement and take some profits from our investment in Formula Systems, which enabled us to raise funds for further acquisitions. In 2010, we invested PLN 427 million in this company, and thanks to the sale of a chunk of our stake in the company and dividends received, we already gained more than we had invested. Today, we hold over 26% stake in Formula Systems worth PLN 570 million, and remain the largest shareholder in the company, said Adam Góral, President of the Management Board of Asseco Poland.
The impact of the sale of a chunk of our stake in Formula Systems brought additional profit in 2017, which, on the one hand, translated into a record high net result for the shareholders, amounting to PLN 467 million in total. This means an increase by as much as 55% compared to 2016. On the other hand, due to the lack of a consolidation of Formula Systems in August and September 2017, the results on the level of revenues and operating profit are respectively lower. If we had consolidated Formula Systems as before, then sales in 2017 would have been higher by almost PLN 800 million and would have reached PLN 8.7 billion, said Rafał Kozłowski, Vice President of the Management Board of Asseco Poland.
The intensive development of Asseco was driven primarily by its operations on the international markets, which generated 80% of the Group's sales revenues and 64% of operating profit.
2017 was a successful year for the Asseco Group. We generated nearly PLN 8 billion in revenues and PLN 585 million in operating profit. We developed dynamically in foreign markets, which generate as much as 80% of the Group's revenues. This is a good example of the fact that Asseco - established and managed by the Poles - has become a truly international company in recent years. In the previous year we carried out a number of important foreign projects, among others, in the banking, insurance, general business and energy sectors. We also continued our development through acquisitions of companies operating, among others, in the industrial, ERP and insurance sectors. In order to manage the Group's operations even more effectively in foreign markets and to simplify its organizational structure, we established Asseco International, said Adam Góral. Currently, our goal is long-term and stable development, which is why we focus on developing proprietary software and strengthening sectoral competences, which will allow us to further strengthen the Group's international position and build value for our shareholders, he added.
The sales of proprietary software plays a key role in the results of Asseco. The revenues from this source of activity reached PLN 6.2 billion and accounted for 80% of total sales. If they had been consolidated for the entire 12 months of the previous year, they would have amounted to almost PLN 7 billion, i.e. by 10% more than in 2016. The Group's operations are well diversified both geographically and sectorally. The general business sector has the largest share in our sales, accounting for 40% of the Group's total revenues, with the banking and finance sector accounting for 39% and the public administration sector for 21%.
For years we have been successfully implementing our foreign investment and exports strategy, as well as our geographical and sectoral diversification strategy. This allows us to build long-term, stable growth of the Asseco Group. For example, in the administration sector in Poland, despite some delicate symptoms of a rebound, stagnation continued in 2017. But today 80% of our revenues are generated outside Poland, and the domestic public sector accounts for only 4.4% of the Asseco Group's total revenues, added Adam Góral.
The Group's order backlog for 2018 totals PLN 5.5 billion at the revenues level, which is at the level of the order backlog presented in March 2017.
Asseco Poland has been consistently building value for its shareholders and this year, too, the Management Board of the Company recommended a dividend payment.
Positive financial results of the Group and promising development prospects allowed us to recommend the payment of a high dividend again and to allocate PLN 250 million for this goal this year. For years, Asseco has been consistently sharing its achievements with its shareholders, and so far it has allocated over PLN 1.67 billion for dividend payments, said Adam Góral, President of the Management Board of Asseco Poland.
The amount of a dividend recommended by the Company's Management Board is equivalent to PLN 3.01 per Asseco Poland's share and translates into a dividend yield of 6.3% (as at March 15, 2017).