Proprietary software and related services as well as strong business diversification the basis for continued stable growth of the Asseco Group in H1 2023
In the first half of 2023, the Asseco Group's revenues exceeded PLN 8.5 billion (EUR 1.8 billion), which marked an increase by 3% versus the corresponding period in the previous year. Proprietary software and related services accounted for 79% of this amount - more than PLN 6.7 billion (EUR 1.5 billion). In turn, operating profit reached PLN 793 million (EUR 172 million), while net profit attributable to shareholders of the parent company stood at PLN 231 million (EUR 50 million).
For the assessment of the financial situation and development of the Asseco Group's business activities, the basic data published in non-IFRS* terms is an important piece of information. During the first six months of 2023, the Asseco Group generated PLN 982 million (EUR 213 million) in non-IFRS* operating profit, up 2% versus the first half of 2022. In turn, non-IFRS net profit attributable to Asseco Poland’s shareholders totaled PLN 260 million (EUR 56 million).
Asseco's revenues remain very well diversified by sectors. In H1 2023, they were distributed as follows: general business - 42%, finance and banking - 34% and public institutions - 24%. The Group recorded sales increases in each of these areas. In the public institutions sector, revenues increased by 6%, in finance and banking the increase was 3%, and in the general business sector it reached 2%. Asseco has a diversified customer portfolio - the 10 largest contractors accounted for 11% of the Group's revenues, while the largest customer was responsible for 2%.
Sales growth in Poland and strong position on foreign markets
A very good half-year period was recorded by Asseco Poland. Revenues in this segment increased by 16% in H1 2023 to PLN 971 million (EUR 210 million). Foreign markets represented by the Formula Systems and Asseco International segments accounted for 89% of the Group's total sales. The Formula Systems segment recorded PLN 5.6 billion (EUR 1.2 billion) in revenues, which marked a 3% increase versus the first six months of 2022. Sales of the Asseco International segment were comparable to the same period a year earlier and reached PLN 1.9 billion (EUR 421 million). During the period under review, the Asseco Group’s companies finalized three acquisitions on the Israeli market, strengthening their position in the area of cyber security and expanding their offerings with more IT solutions and services.
"Asseco's continued growth in a volatile business environment was possible thanks to strong sector, product and geographic diversification. We are pleased with the very good results in the Asseco Poland segment, where revenues grew at a double-digit rate. In the first half of the year, we observed dynamic sales growth in the areas of finance and banking, healthcare, energy and telecommunications. Revenues from the general business sector grew by 29% in Poland, and from finance and banking by 28%. Our revenues grew dynamically at Asseco Data Systems companies, including in the areas of trust services, and at Asseco Cloud, which generated sales in the first half of the year that were over 30% higher than in the corresponding period in the previous year" - said Karolina Rzońca-Bajorek, Vice President, CFO of Asseco Poland. "In the case of international markets and the Asseco International segment, we are very pleased with the sales of ERP solutions. The Asseco South Eastern Europe Group increased its scale of operations in all segments. Formula Systems companies have been successively acquiring new contracts and winning customers in Israel, North America and Europe" – added Asseco Poland’s CFO.
Asseco's consolidated order backlog for 2023 in variable exchange rates, in the area of proprietary software and services, is now worth PLN 12.2 billion (EUR 2.7 billion). In fixed exchange rates, it amounts to PLN 13.4 billion (EUR 2.9 billion) and is 7% higher than in the corresponding period last year.
* The non-IFRS recognition includes adjustments for the cost of amortization of intangible assets recognized in purchase price allocation (PPA), the costs of share-based payment transactions with employees (SBP), the revenues and costs related to company acquisitions/sales and one-off events (and related tax effects).