Dynamic foreign expansion - PLN 2 billion in revenues in the first quarter of 2017 for the Asseco Group
On May 25, 2017, the Asseco Group published its financial results for the first quarter of 2017. Sales revenues increased by 12% on annual basis to over PLN 2 billion. The revenues from the sales of proprietary software and services increased by 14% on annual basis to PLN 1.7 billion. The operating profit amounted to PLN 165 million and the net profit attributable to shareholders of the parent company reached PLN 61 million.
The Asseco Group's revenues from the sales of proprietary IT solutions accounted for 82% of total revenues in the first quarter of 2017. The share of foreign markets in total revenues increased to 83% and amounted to PLN 1.7 billion. The structure of the Group's revenues is strongly diversified among sectors and was as follows in the first three months of 2017: 41% - general business, 38% - banking and finance, and 21% - public institutions. The Group grew especially dynamically in the ERP segment, with revenues 16% higher than in the corresponding period in the previous year in that area of activity.
In the first quarter of 2017, the revenues of the Asseco Group increased significantly, exceeding the level of PLN 2 billion. This is a result of dynamic development in foreign markets, whose share in the Group's total revenues reached 83%. In addition, we strengthened the presence of the Group in the ERP solutions segment - our companies operating in this area achieved very good results, we are developing Asseco Enterprise Solutions and we have decided on a new acquisition that will strengthen the Group's potential in this market. As far as the operating profit is concerned, it was strongly affected by worse quarterly results of the Israeli company Sapiens, which was a consequence of ending up work with a key client. In turn, the net profit was strongly affected by negative currency exchange rate fluctuations, especially in Grupa Formuła - said Rafał Kozłowski, Vice President of the Management Board of Asseco Poland.
Revenues' growth in the first quarter of 2017 resulted mainly from foreign markets, in which the Asseco Group operates. The Israeli companies maintained strong sales growth dynamics (22%) in the first three months of 2017, exceeding PLN 1.2 billion in revenues. It is worth noting that Sapiens strengthened its presence in the US market through the acquisition of insurer StoneRiver. In the South Eastern European market, revenues grew by 11%, thanks to the growth in payments, banking and integration segments. The Western European market recorded an increase of 2% in revenues on annual basis, thanks to focusing on selling proprietary solutions in Spain, Western Europe, and the African markets, in which Portuguese company Exictos operates. As part of the further reorganization of the Group's structure, Asseco Central Europe was delisted from the Warsaw Stock Exchange (GPW). Central Europe saw a significant increase in the sales of ERP systems with a decline in infrastructure revenues. In Poland, Asseco Business Solutions, which specializes in the ERP solutions, achieved satisfactory results.