Asseco Poland S.A. (ASOZY) Q2 2024 earnings summary

Executive summary

• H1 2024 saw a 6% profit growth year-over-year, excluding FX effects, with nearly 90% of revenues from non-Polish customers and sales stable at PLN 8.4 billion.

• Net profit attributable to shareholders was PLN 235 million, with non-IFRS net profit at PLN 258 million and market capitalization at PLN 7.4 billion.

• Order backlog increased by 7% year-over-year, reaching PLN 13,068 million as of August 20, 2024, indicating strong future demand.

• Seven acquisitions were completed, expanding presence in payments and new markets such as India, Dubai, Israel, UAE, Ukraine, US, Portugal, and Bosnia.

• Positive outlook for H2 2024, with continued focus on M&A, organic growth, and a robust order backlog.

Financial highlights

• Sales revenues for H1 2024 were PLN 8,397 million, with proprietary software and services contributing PLN 6,626 million.

• Non-IFRS operating profit was PLN 981 million; non-IFRS EBITDA was PLN 1,266 million; net profit for H1 2024 was PLN 258 million.

• Net profit attributable to shareholders (reported) rose 2% to PLN 235 million; basic and diluted EPS was PLN 3.45.

• Cash generated (LTM) was PLN 2,895 million, with a free cash flow of PLN 2,308 million and cash conversion ratio of 117%.

• Strong Polish zloty led to a negative currency impact of over PLN 625 million on income.

Outlook and guidance

• Management expects continued growth in H2 2024, supported by a robust order backlog and ongoing M&A activity.

• Positive prospects for public administration and enterprise segments, despite some one-off quarterly declines.

• No threat to going concern for at least 12 months, despite geopolitical risks in Ukraine and Israel.