Dynamic growth in all business segments - record-breaking revenues and operating profit of the Asseco Group
In 2018, for the first time in history, the Asseco Group's revenues exceeded PLN 9.3 billion and its operating profit amounted to PLN 796.8 million, which marks an increase of 36% versus 2017. The Group achieved very good results in all segments and business areas. It developed intensively both in Poland and on foreign markets, where it generated 85% of its sales. The core business of Asseco remains the sale of proprietary IT products and services, which in the previous year amounted to over PLN 7.5 billion, representing 80% of the Group's total revenues.
Comparable results of the Group, including the consolidation of Formula Systems' results for the whole year 2017, were better in 2018 than in the previous year - the Group's revenues and sales of proprietary software and services increased by 7%, and the operating profit was higher by 30%.
The Asseco Group's revenues are diversified by sectors, and in 2018 they were divided into general business (38%), banking and finance (40%), and public administration (22%). The Group is also geographically diversified and presents its results divided into three segments: Asseco Poland (Polish market), Formula Systems Group (Israeli market) and Asseco International (other international markets).
It was a very good year for Asseco. Our revenues reached the highest level in history - over PLN 9.3 billion. Operating profit amounted to PLN 796.8 million, which is also a record-breaking result. We developed dynamically in all segments of our business: Asseco Poland, Asseco International and Formula Systems. We successfully developed the sales of our proprietary software and carried out successful acquisitions. We have been also constantly developing our innovations because we want to keep the freshness and flexibility of startups while being a large international company. However, our approach to innovations is pragmatic - Asseco's products are developed on the basis of real market needs and in close cooperation with our clients, said Adam Góral, President of the Management Board of Asseco Poland.
On the Polish market, very good results were achieved in the banking and finance sector. Significant growth in this area results from consistent development of the sales of proprietary banking products, with which Asseco Poland has been increasingly more active abroad. In 2018, Asseco Poland was also joined by Nextbank, which sells its core banking system in a cloud option for banks in the Philippines.
The Asseco International segment, under which the Group's international operations are developed, increased its sales revenues by 16% versus 2017. Asseco strengthened its position in Central Europe thanks to acquisitions and growing sales of ERP systems and modern solutions for industry. Asseco Central Europe also signed several important contracts with public sector institutions in the Czech Republic.
Asseco SouthEastern Europe, which consistently strengthens its position in the payment market, enjoyed another record-breaking year, and currently offers advanced payment solutions under the new Payten brand. It also successfully implements the strategy of international expansion. Recently, it has entered the Spanish-speaking markets and is planning further acquisitions. Revenues were also increased by companies operating on the Western European market and in Portuguese-speaking African countries.
The Formula Systems Group companies continue their growth thanks to successful acquisitions on the Israeli and US markets and entry into new, prospective business areas. Sapiens, one of the world's largest providers of IT solutions for the insurance sector, returned to growth after a difficult year in 2017 and significantly improved its results.
Currently, the Group's order backlog for 2019 at the revenue level amounts to PLN 6.2 billion and is by 14% higher than the backlog presented in March 2018.
Asseco Poland has been consistently building shareholder value and has continuously shared its profit with the shareholders. This year, the company's Management Board recommended the payment of the highest dividend ever.
The Group's very good financial results and promising development prospects allowed us to recommend a record dividend and allocate PLN 254.8 million for this purpose this year. Asseco has been consistently sharing its achievements with the shareholders for years and has so far allocated almost PLN 2 billion for dividend payments, said Adam Góral, President of the Management Board of Asseco Poland.
The amount of dividend recommended by the Company's Management Board is an equivalent of PLN 3.07 per Asseco Poland's share and translates into a dividend yield of 6.1% (as at March 25, 2019).