Asseco strengthens its leading position among IT companies on the WSE - publication of record-breaking financial results after Q1, 2019.
In the first quarter of 2019, Asseco achieved record-breaking results and improved profitability. For the first time in history, the Group's revenues in this period exceeded PLN 2.4 billion. The Group developed intensively on foreign markets, where it generated 86% of its sales. Asseco's core business is still the sale of proprietary IT products and services, which in the previous quarter amounted to PLN 2 billion or 81% of the Group's total revenues. Operating profit amounted to PLN 224.7 million, i.e. by 34% more than in the corresponding period last year.
For the purpose of assessing the financial and business position of Asseco, the key information is the basic data published on a non-IFRS basis, supplementing the data reported in accordance with IFRS*. In the first quarter, non-IFRS operating profit amounted to PLN 281 million and was higher by 19%, while non-IFRS net profit increased by 10% to PLN 90 million.
The first three months of 2019 were very successful for the Group - we achieved record-breaking results and improved profitability. It is worth noting that this was the 36th consecutive quarter when Asseco recorded an increase in its sales revenues and 58th consecutive quarter when it was profitable. This makes us the undisputed leader among IT companies listed on the Warsaw Stock Exchange, said Rafał Kozłowski, Vice President of the Management Board, Asseco Poland.
We have promising development prospects. Compared to the first quarter of 2018, the consolidated order book increased by 9% and amounts to PLN 7.2 billion. Asseco International started to implement new major projects for the public sector in the Czech Republic and Slovakia, and we have been developing our presence in the banking and ERP segments. We are also satisfied with the results of Formula Systems, which has a strong backlog for 2019, thanks to new companies in which it invested last year. On the Polish market we have won significant public tenders, including at the Agency for Restructuring and Modernization of Agriculture (ARiMR), the Farmers' Social Security Fund (KRUS) and the Social Insurance Institution (ZUS), and we have been strengthening our position in cyber security as well, he added.
The Asseco Group's sales revenues are diversified by sectors and in the first quarter of 2019 they were distributed among general business (38%), banking and finance (39%), and public administration (23%). Asseco is also geographically diversified and presents its results broken down by three segments. Formula Systems generated 61% of consolidated sales revenues of the Group, Asseco International-27%, and Asseco Poland - 12%.
Currently, the Group's order backlog for 2019 at the revenue level amounts to PLN 7.2 billion and is by 9% higher than the backlog presented in May 2018.
* Non-IFRS figures include adjustments for amortization charges on intangible assets recognized in purchase price allocation (PPA), for the costs of share-based payment transactions with employees (SBP), as well as for financial income and expenses recognized in accounting for company acquisitions (M&A) and disposals (inclusive of the related tax effects).