Double-digit growth of revenues and operating profit - dynamic development of Asseco in three quarters of 2019
In the first three quarters of 2019, the Group's revenues increased by 16% and reached the level of PLN 7.7 billion. Operating profit amounted to PLN 715 million, which marked an increase by 28% versus the corresponding period in 2018. Asseco successfully continues its development strategy on foreign markets, where it generates 88% of its revenues. Asseco's core business is the sale of proprietary software and services, which, after a 16% increase, amounted to over PLN 6.3 billion.
For the purpose of assessing the financial and business position of Asseco, the key information are the basic figures published on a non-IFRS basis. They supplement the data reported in accordance with IFRS*. After three quarters of 2019, non-IFRS operating profit amounted to PLN 885.5 million and was higher by 19%, while non-IFRS net profit amounted to PLN 270.2 million.
We are satisfied with our results and the dynamic development of Asseco on international markets. In particular, we are pleased with the double-digit increases in revenues and operating profit. We see a positive impact of the implementation of our strategy, which is based on international expansion and diversification of our business. Asseco International achieved a 13% increase in sales to PLN 2.0 billion and improved its profitability. The Formula Systems Group also achieved a higher margin with a double-digit increase in revenues. Acquisitions carried out during the reported quarters give us interesting prospects for development on new markets as well as for expanding our offer of innovative IT products. We generated PLN 893.8 million in revenues in the Asseco Poland segment. We are pleased with the signing of new, long-term contracts with public sector institutions and enterprises with a total value of several hundred million PLN. We also observed an increase in sales in the health sector, thanks to the implementation of new, important projects related to the digitization of this area. In addition, we achieved very good results in the banking sector, despite the high base of revenues generated in the same period in the previous year, said Rafał Kozłowski, Vice President of the Management Board of Asseco Poland.
The revenues of the Asseco Group are diversified by sectors, and in the first three quarters of 2019 they were the following: 39% (PLN 3.0 billion) generated by banking and finance, 38% (PLN 2.9 billion) by general business and 23% (PLN 1.8 billion) by public administration. Asseco is also geographically diversified and presents its results broken down by three segments: Formula Systems generated 62% of the Group's consolidated sales revenues (PLN 4.8 billion), Asseco International - 26% (PLN 2.0 billion), and Asseco Poland - 12% (PLN 0.9 billion).
Currently, the Group's order backlog for 2019 at the revenue level amounts to PLN 10.1 billion and is by 14% higher than the backlog presented in November 2018.
*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 costs and financial revenues resulting from the transactions of purchase and sales of companies (M&A) and tax effects associated with them).