Asseco South Eastern Europe (ASE) Q1 2025 earnings summary

Executive summary

• Strong Q1 performance with significant growth in Payment Solutions, especially e-commerce, processing, and ATMs, while Dedicated Solutions underperformed due to project delays in Serbia and Romania.

• Banking Solutions exceeded expectations, particularly in core and channel solutions, with improved profitability.

• Cash conversion and net cash balance improved, despite collection delays in the Middle East and India.

• Negative impacts from currency volatility, including a strong PLN versus EUR and hyperinflation in Turkey.

• Net profit declined due to a loss on subsidiary disposal and hyperinflation adjustments.

Financial highlights

• Revenue grew 13% year-over-year to €95.7m (PLN 400.3m), with Payment Solutions contributing the majority of growth.

• EBIT increased 8% year-over-year to €11.7m (PLN 49.1m); EBITDA up 9% to €17.9m (PLN 74.8m).

• Net profit after tax declined 14% year-over-year to €9.1m (PLN 38.2m); net profit attributable to shareholders fell 24% to PLN 35.8m, mainly due to a one-off loss.

• Acquisitions contributed €3.1m to revenue, €0.9m to EBIT, and €1.3m to EBITDA.

• Operating cash flow for Q1 2025 exceeded €15 million, up from less than €1 million last year.

Outlook and guidance

• Positive outlook with backlog coverage at 13-14% for all business lines and Q2 2025 backlog up 12% year-over-year.

• Expectation of continued growth in e-commerce, merchant business, and independent POS, especially in Romania and Spain.

• Anticipation of new long-term contracts in dedicated solutions, particularly in intelligent transport systems.

• No financial forecasts for 2025 published; factors influencing next quarter include backlog, project execution, and transaction volumes.