Comarch (CMR) Q2 2024 earnings summary

Executive summary

• H1 2024 consolidated revenue rose 6.8% year-over-year to PLN 878.5 million, with operating profit up 56.6% to PLN 37.3 million and net profit at PLN 23.5 million, down from H1 2023.

• Q2 2024 revenue increased 12.4% year-over-year to PLN 443.8 million; operating profit more than doubled to PLN 9.8 million, but net profit dropped sharply to PLN 1.5 million.

• Comarch S.A. standalone revenue increased 2.6% year-over-year to PLN 621.4 million, with net profit at PLN 99.2 million, up from PLN 32.4 million in H1 2023.

• The Group operates in over 70 countries with more than 6,300 professionals.

• A tender offer for all shares at PLN 315.40 per share was announced and deemed fair by the Management Board.

Financial highlights

• Q2 2024 EBITDA rose 28.6% year-over-year to PLN 51.96 million; H1 2024 EBITDA reached PLN 118.2 million.

• Group EBIT for H1 2024 was PLN 45.1 million, down from PLN 64.7 million year-over-year; net margin at 2.7%.

• Standalone EBIT margin for Comarch S.A. reached 6.4%, with net profitability at 16%.

• Group operating cash flow was PLN 44.1 million, a decrease from PLN 85.2 million in H1 2023.

• Basic and diluted EPS for the Group were PLN 2.89, compared to PLN 6.12 in H1 2023.

Outlook and guidance

• The 2024 order book is 2–3% higher than at the same time in 2023, indicating a positive sales outlook.

• Sales revenue distribution in 2024 is expected to mirror 2023, with higher sales in the fourth quarter.

• The Group anticipates continued geographic and product diversification, with no dependency on a single customer.