Record revenues and dynamic growth in foreign markets – Asseco Group's results after the first half of 2017
In the first two quarters of 2017, Asseco Group's revenues increased by 10% on annual basis to PLN 4.1 billion. Operating profit amounted to PLN 309 million. Revenues from the sales of proprietary software and services increased by 12% on annual basis to PLN 3.4 billion. The net profit attributable to shareholders of the parent company reached PLN 113 million at the end of June.
On August 23, Asseco Group published its financial results for the first half of 2017. Its revenues increased by 10% on annual basis to PLN 4.1 billion. The company continued a development strategy based on the sales of proprietary IT solutions - in the reporting period, its value reached PLN 3.4 billion, which accounted for 81% of the Group's total revenues. In the first half of the year, the results were above all boosted by Asseco Group's operations in foreign markets. Their share in total revenues has been gradually increasing - currently, it amounts to 83%. Asseco Group's revenues are diversified not only between geographical regions but also between sectors. The general business sector accounts for 41% of total revenues, the banking and finance sector - for 39%, and the public administration sector - for 20%.
In the first half of the year, Asseco continued the cooperation with key clients and actively worked on new projects. In August 2017, the order backlog amounted to PLN 7.4 billion and was by 7% higher than in the corresponding period in the previous year.
We operate in over 50 countries and we observe high demand for IT products and services. We use this situation to further develop Asseco Group and to build value for its shareholders. In the first half of 2017, we achieved very good results and we are pleased with the Group's record revenue growth. In particular, we are happy with the growing and significant impact of our foreign companies, including Asseco SouthEastern Europe and Asseco Central Europe, among others. We have been dynamically developing the ERP segment and we have signed international contracts in various sectors. We have been exporting our Polish banking systems to Austria, the Czech Republic, Georgia, Nigeria, and one of Western European countries. Recently, we have started the implementation of a new project in the banking sector in Vietnam, said Adam Góral, President of the Management Board of Asseco Poland. In August, we partly booked profits from our investment and sold a 20% stake in Formula Systems. In total, thanks to the transaction and previous dividends, we have received over PLN 450 million, which is a higher amount that our initial investment in the company. We remain the largest shareholder of Formula Systems and we hold a stake of more than 26% of shares worth about PLN 500 million. Thanks to the transaction, we have acquired funds for further investments, he added.
In the first six months of 2017, Israeli companies maintained high growth of revenues (22%), which exceeded PLN 2.5 billion. It is worth noting that Sapiens strengthened its presence in the US market through the acquisition of insurer StoneRiver. In Central Europe, sales increased by 13%, thanks to dynamic growth in the ERP segment, among others. In the South East European market, revenues increased by 9%, and were boosted by higher revenues in the banking sector. The revenues in the Western European market went up by 2% on annual basis thanks to focus on selling proprietary solutions in Spain, Western Europe, and the African markets, where Portuguese company Exictos operates. In Poland, revenues dropped by 14%, mainly due to continued stagnation in the public tender sector. However, it is worth noting that Asseco Business Solutions, which specializes in the ERP solutions, improved its results in the reporting period.