Asseco's Net Profit for 2010 Exceeds PLN 415 million
In 2010 the Asseco Group achieved its record-breaking financial results. Sales revenues reached PLN 3.24 billion and they increased by 6% as compared with 2009. Operating profit improved 8% year on year and amounted to PLN 569 million. The Group generated a net profit of PLN 415.1 million, reflecting a growth of 11% from the year-ago earnings of PLN 373 million. Last year Asseco signed a number of prestigious contracts and finalized its largest foreign acquisition ever. Asseco Poland S.A. took over Formula Systems, an Israeli IT holding.
The Asseco Group consistently pursues its strategy to boost financial results by promoting sales of its proprietary IT solutions. In 2010, sales of proprietary software and own services increased to PLN 2.07 billion and they accounted for 64% of the total turnover. Sales revenues were evenly distributed among our individual target sectors (banking and finance 34%, industrial enterprises 32%, and public administration 32%), which proves the Group's business is well diversified.
Our organic growth and acquisitions help reinforce the Asseco's position among the leaders of the European information technology market. As the only Polish IT company, Asseco ranked in the TOP 10 of the largest producers of software in Europe.
The year of 2010 was extremely important also in terms of new acquisitions. The Company completed the biggest foreign acquisition in its history. Near the year's end, Asseco Poland acquired the Israel's leading IT company, namely Formula Systems, listed on the Tel Aviv Stock Exchange as well as on the NASDAQ Global Market. Owing to this investment, the Asseco Group is present also outside Europe, among others in Israel, United States, Canada, and Japan. The acquisition of Formula Systems is the first milestone in building a truly global IT major called Asseco.
Furthermore, Asseco Poland S.A. acquired Necomplus, a Spanish company specialized in solutions for POS terminals and call centers, with business operations across Spain and Portugal. Other companies of the Group consolidated their local IT markets as well. Asseco Central Europe took over the Hungarian GlobeNet engaged primarily in the production of software for the healthcare sector. Whereas, Asseco South Eastern Europe was joined by two Turkish companies, namely EST and ITD, which launched the Asseco Group operations in that market.
Last year Asseco Poland S.A. was awarded many prestigious contracts. In October the Company concluded two 3-year agreements with the Polish Social Insurance Institution – the first for maintenance, and the second for modification and development of their Comprehensive Information System. Asseco Poland S.A. was chosen as one of the key IT suppliers for the Polish Telecom (TP) and PTK Centertel. The Company signed 3-year framework agreements under which it shall cooperate with the Polish Telecom Group in the areas of billing systems and business intelligence software. Another significant event was to sign a package of four agreements with Vattenfall AB of Sweden, whereby Asseco Poland S.A. became an important partner to the Vattenfall Group at the corporate level.
Our plans for 2011 anticipate continued expansion of the Asseco Group. Asseco Poland S.A. is engaged in negotiations with several businesses in West Europe. Together with Formula Systems, the Company intends to boost its market position also in the United States and Israel. Regardless of our investment plans, Asseco is going to focus on the business where it has strong competitive advantage – the production of its own state-of-the-art IT solutions for the largest institutions in Europe and worldwide.