Asseco Business Solutions (ABS) H2 2023 earnings summary

Executive summary

• 2023 revenues grew 12.4% year-over-year to PLN 380.5M, with net profit up 11.4% to PLN 95.0M and EPS at PLN 2.84.

• EBITDA increased 10.9% to PLN 145.1M, and EBIT rose 8.6% to PLN 109.4M compared to 2022.

• The enterprise/ERP segment contributed over 91% of 2023 revenues, with strong domestic and international growth.

• Dividend of PLN 2.30 per share paid for 2022, totaling PLN 76.9M.

• R&D revenues accounted for 33% of turnover, with significant investment in new product development.

Financial highlights

• Receipts from sales reached PLN 380.5M in 2023, up from PLN 338.5M in 2022.

• Q4 2023 net profit was PLN 29.2M, up 0.8% year-over-year; Q4 EBITDA rose 5.7% to PLN 41.4M.

• Cash and short-term deposits at year-end 2023 were PLN 53.0M, up from PLN 48.3M.

• Net cash from operating activities was PLN 129.4M in 2023.

• Profitability remained high: 2023 EBITDA margin at 38.1%, EBIT margin at 28.8%, net margin at 25.0%.

Outlook and guidance

• Backlog for 2024 covers 73.5% of 2023 sales, up from 71.3% the prior year.

• Management recommends a 2024 dividend of PLN 2.60 per share, up from PLN 2.30 in 2023.

• Management sees no direct impact from the war in Ukraine; inflation and interest rate volatility are monitored but not expected to materially affect results.

• No significant post-balance sheet events or changes in business conditions identified.