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Asseco's results for three quarters of 2022 - stable growth and further business diversification in international markets

After three quarters of 2022, Asseco achieved PLN 12.8 bn (EUR 2.7 bn) in sales revenues, which marked an increase by 24% year-on-year. Sales of proprietary products and IT services increased by 22% and amounted to PLN 9.9 bn (EUR 2.1 bn). Consolidated operating profit stood at PLN 1.4 bn (EUR 288 m), up by 29%. Net profit attributable to shareholders of the parent company increased by 4% to PLN 376 m (EUR 80 m). The Group continued stable growth in all business segments.

After nine months of this year, non-IFRS* operating profit amounted to PLN 1.5 bn (EUR 315 m), up by 15% year-on-year, while non-IFRS net profit attributable to Asseco Poland’s shareholders stood at PLN 409 m (EUR 87 m), up by 6%. For the Asseco Group, the non-IFRS figures provide important information on its financial position, as well as for assessing the development of its business.

The Group increased sales in all operating segments, thanks to a consistently pursued strategy of geographic, product and sector diversification of business. After three quarters of this year, foreign markets represented by Formula Systems and Asseco International accounted for 90% of the Group's sales.

Revenues in the Formula Systems segment amounted to PLN 8.6 bn (EUR 1.8 bn), which marked an increase of 29%, and operating profit amounted to PLN 885 m (EUR 189 m), up by 70% from the corresponding period in 2021. The reported level of operating profit in this segment is significantly and negatively impacted by additional amortization costs of intangible assets recognized under the combination settlement (PPA) and the costs of share-based payment transactions with employees (SBP), which reduced it by PLN 245 m (EUR 52 m) over the three quarters of 2022. At the same time, in the reporting period, the operating profit was favorably affected – in the amount of PLN 197 m (EUR 42 m) - by the sale of shares in Infinity Labs R&D. After taking these adjustments into account, the Formula Systems segment's non-IFRS operating profit stood at PLN 933 m (EUR 199 m), 27% higher than in the same period a year ago.  In the Asseco International segment, sales increased by 18% to PLN 3.0 bn (EUR 638 m), and operating profit reached PLN 254 m (EUR 54 m). After non-IFRS adjustments, this segment's operating profit was similar to last year's levels, totaling PLN 321 m (EUR 68 m). The Asseco Poland segment generated revenues of PLN 1.3 bn (EUR 268 m), up by 12% from a year earlier, and operating profit was 4% higher at PLN 215 m (EUR 46 m).

The Asseco Group's revenues are very well diversified by sectors. After 9 months of 2022, they were distributed as follows: general business - 42%, banking and finance - 34% and public institutions - 24%.

In the third quarter of this year alone, the Group recorded sales of PLN 4.5 bn (EUR 959 m), which marked an increase of 28%. Operating profit stood at PLN 422 m (EUR 90 m) – up by 13%, and non-IFRS operating profit was PLN 512 m (EUR 109 m) –  up by 12%. Net profit attributable to shareholders of the parent company amounted to PLN 128 m (EUR 27) –  up by 6%, and in non-IFRS terms at PLN 138 m (EUR 30 m) – up by 1%.

The first three quarters of 2022 were a period of stable growth for us. We recorded improved results, despite difficult business conditions and rising labor costs. This was made possible by our continued strategy of geographic, product and sector diversification, which, with the high rate of digitization in the economy, allows us to grow steadily. The nature of our business allows us to focus on recurring revenues, which provides financial stability and predictability. We are also constantly increasing the scale of the business through acquisitions. In the first nine months of 2022, 10 new companies joined the Group. Despite the volatile macroeconomic environment, demand for our solutions persists, as evidenced by our order backlog growing in fixed exchange rates by 10% compared to the backlog a year ago. At the same time, we take into account external factors related to the economic situation in Poland and the world, and with so much uncertainty, we approach the future with caution, says Karolina Rzońca-Bajorek, Vice President of the Management Board of Asseco Poland.

Asseco's consolidated order backlog for 2022 at floating exchange rates, in the area of proprietary software and services, is now worth PLN 12.9 bn (EUR 2.8 bn), 19% higher than in the same period last year. Recalculating the backlog for 2022 at the rates at which the backlog for 2021 was converted, the increase is 10% to PLN 11.9 bn (EUR 2.5 bn).

* Non-IFRS figures include 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), and the revenues and costs resulting from the transactions of purchase and sales of companies (M&A) and one-off events (and tax effects associated with them).