PLN 6.7 billion in revenues and increased profits in key areas - results of the Asseco Group after the third quarter of 2018
In the first three quarters of 2018, the Asseco Group achieved an increase in revenues and operating profit in all business segments. The Group's revenues amounted to PLN 6.7 billion, 82% of which were generated from the sales of proprietary software and services. Operating profit amounted to PLN 558.7 million and net profit attributable to shareholders of the parent company amounted to PLN 235 million. In Poland, growth was driven by the banking sector and the sales of products to foreign customers. The Group also strengthened its position in the US, thanks to acquisitions made by Formula Systems.
The financial results of the Asseco Group for the first three quarters of 2018 are directly comparable with the corresponding period in the previous year. In August 2017, Asseco sold a portion of its stake in Formula Systems. It achieved a record-breaking net profit at the time, but on the other hand, the revenues and operating profit generated by the Israeli Group were not consolidated in August and September. In October 2017 Asseco regained the control over Formula Systems and since then it has included the Group's revenues and operating results again. Assuming the consolidation of Formula Systems' results throughout the whole third quarter of the previous year, thus ensuring comparability of results, the Group's revenues increased by 6% - the same applies to the sales of proprietary software and services. In turn, the operating profit increased by 23%.
The Asseco Group's revenues are diversified by sectors, and in the first nine months of 2018 they were divided into the general business sector (39%), banking and finance (40%), and public administration (21%). 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).
During the first three quarters of this year, we were satisfied with the results we achieved in the banking sector in Poland - the revenues in this area increased by 8%. Among other things, they were positively affected by the consistent development of the sales of our banking products abroad. Also noteworthy is the strengthening of the Asseco Group's presence on international markets. The Formula Systems Group's companies increased their sales and carried out interesting acquisitions in Israel and the US. The revenues in the Asseco International segment increased by 16%, largely thanks to dynamic growth in South Eastern Europe, especially in the payments area. In addition, Asseco Central Europe achieved significantly higher sales, among other things, thanks to the incorporation ofMacrologic, CEIT and DWC Slovakia into the Group, said Rafał Kozłowski, Vice President of the Management Board of Asseco Poland.
The basis for Asseco's operations and development strategy remains the sale of proprietary IT products and services, which in the past period amounted to over PLN 5.5 billion. This represents 82% of total revenues. Additionally, Asseco continues its cooperation with key clients and actively supports new projects. In November 2018, the order backlog amounted to PLN 8.8 billion and was by 6% higher than in the corresponding period in the previous year (assuming consolidation of Formula Systems' results in the whole third quarter of 2017).