Asseco South Eastern Europe (ASE) H1 2024 earnings summary

Executive summary

• Q2 2024 saw strong EBIT growth year-over-year, mainly from Payment Solutions, especially eCommerce, Processing, and direct-to-merchant networks.

• ASEE Group reported sales revenues of PLN 764.7 million and net profit attributable to shareholders of PLN 87.0 million for H1 2024, with operations in 23 countries and 3,957 employees.

• Dedicated Solutions were negatively impacted by one-off effects, including revenue reversal and asset write-offs.

• The Group continued its expansion with acquisitions in India, UAE, and Ukraine after the reporting period.

• Strong PLN versus EUR had a material negative impact on results in PLN (7% for H1).

Financial highlights

• Q2 2024 revenue was €92.4m, up 5% year-over-year; EBITDA €15.6m (-11%), EBIT €10.1m (-21%), NPAT €9.3m (-31%).

• H1 2024 revenue reached €177.4m (+5% YoY); EBITDA €32.1m (flat), EBIT €21.0m (-9%), NPAT €20.6m (-13%).

• Group sales revenues increased to PLN 764.7 million from PLN 755.6 million year-over-year.

• Net profit attributable to shareholders was PLN 87.0 million, down from PLN 92.0 million year-over-year.

• Acquisitions contributed €2.9m to Q2 revenue and €5.7m to H1 revenue.

Outlook and guidance

• Backlog for Q3 2024 up 34% year-over-year, with Payment Solutions backlog up 44%.

• Management expects a smaller slowdown in Banking Solutions in H2 than previously anticipated.

• Recent acquisitions in India, UAE, and Ukraine are expected to positively impact future financial performance, with consolidation of results starting in H2 2024.