Very good quarter for the Asseco Group - increase in revenues and profits in the most important business areas
In the first quarter of 2018, the Asseco Group recorded very good financial results. Sales revenues increased by 4% on annual basis to over PLN 2.1 billion. Operating profit amounted to PLN 167 million and was higher by 1.3%, and net profit attributable to the shareholders of the parent company increased by 13% to PLN 69 million. Profits cleared of the negative effect of additional amortization associated with regaining control over Formula Systems increased at a double-digit rate.
For the purpose of assessing the financial position and business development of the Asseco Group, data adjusted for the cost of additional amortization of intangible assets (PPA and SBP) recognized in connection with regaining control over the Formula Systems Group, are of key importance. Excluding this negative accounting effect, the Group's profits increased at a double-digit rate: non-IFRS* operating profit increased by 19% to PLN 235 million, while non-IFRS* net profit went up by 21% to PLN 81 million.
In the first quarter we recorded very good results - the sales of the Asseco Group increased in all business segments, while profits net of the negative effect of additional amortization of intangible assets recognized in connection with regaining control over Formula Systems went up by 20%. We are driven by, among others, the banking sector and new orders related to support in adapting to important changes in Polish and EU law, as well as an increasing number of international implementations carried out by the Group's companies. Our results reflect successes in individual segments. Visible increases were recorded by the Formula Systems Group, although they were offset by the negative impact of changes in foreign exchange rates, among other factors. Asseco International achieved double-digit sales growth. Our competence center dealing with the payments segment has been developing dynamically, said Rafał Kozłowski, Vice President of the Management Board of Asseco Poland.
Currently, the Asseco Group presents its results in three key geographical segments: the Polish market, the Israeli market, i.e. the Formula Systems Group, and international markets managed by the Asseco International holding.
The Group's results were mainly influenced by foreign markets. Israeli companies had a good quarter. Revenues were maintained at a stable level and amounted to PLN 1.3 billion. The decrease in operating profit by 22% to PLN 57 million was mainly due to the impact of additional amortization of intangible assets recognized in connection with regaining control over the Formula Systems Group. In addition, the level of operating profit was negatively affected by exchange rate differences. Assuming the exchange rates remained at last year's levels, both operating income and operating profit would be by 14% higher.
Asseco International, which is responsible for other international markets, increased its revenues by 14% to PLN 574 million. Organic growth was supported by last year's acquisitions of the Slovakian CEIT and the Polish company Macrologic. On international markets, Asseco has benefited from increased demand for the ERP solutions, and expanded its offering of advanced products for the industrial, banking and financial sectors. There was a significant improvement in the area of payments, particularly in the area of the ATM maintenance services.
On the Polish market, revenues increased to PLN 316 million and the operating profit was higher by 41% and amounted to PLN 56 million. Asseco Poland had the greatest impact on the improvement of these results, as it was particularly successful in the banking sector. The results in the public sector also improved.