Asseco Poland S.A. (ASOZY) Q3 2024 earnings summary

Executive summary

• Sales revenue reached PLN 12.6 billion for the first three quarters of 2024, with non-IFRS operating profit up 5% and net profit up 4% year-over-year; net profit attributable to shareholders was PLN 369.2 million, up 7.3% year-over-year.

• Excluding currency effects, revenue increased by 6% and non-IFRS operating profit by 11% year-over-year.

• The group completed 11 acquisitions across global markets, expanding presence in Israel, US, India, UAE, Portugal, and Ukraine.

• Growth was driven by strong performance in finance, public administration, and ERP solutions, with over 60% of revenue from these segments.

• Continued development of innovative products and adaptation to new regulations (DORA, NIS2, eIDAS2, CSIRE, KSeF).

Financial highlights

• Non-IFRS EBITDA reached PLN 1.95 billion, up 3% year-over-year; non-IFRS EBIT was PLN 1.52 billion, up 5%; non-IFRS net profit exceeded PLN 400 million after Q3.

• Foreign exchange rates negatively impacted revenue by PLN 850 million and operating profit by PLN 86 million.

• Sale of real estate contributed PLN 14 million to operating profit and PLN 11 million to net profit.

• Cash conversion rates were strong: 109% for the group, with cash generated (LTM) at PLN 2.8 billion and free cash flow of PLN 2.2 billion.

• Order backlog for proprietary software and services increased 10% to PLN 13.8 billion.

Outlook and guidance

• Backlog growth is robust, with 10% increase in Asseco Poland, 12% in Asseco International, and 9% in Formula Systems, forecasting PLN 13.2 billion in contracted income.

• Q4 is expected to be strong due to seasonality and a solid backlog, with no major negative one-off events anticipated.

• The company remains optimistic about future prospects, supported by EU funds, regulatory adaptation, and ongoing digitization trends.

• Management expects continued stable operations and development over the next 12 months, with no threats to going concern.

• The Group is preparing for the implementation of the EU's Global Minimum Tax (Pillar Two) in 2025 and is analyzing its impact.