Asseco Business Solutions (ABS) Q1 2024 earnings summary

Executive summary

• Q1 2024 revenues increased by 12.0% year-over-year to PLN 99.8 million, with net profit up 18.2% to PLN 24.0 million.

• EBITDA rose 12.8% to PLN 36.4 million, and EBIT grew 13.0% to PLN 26.7 million compared to Q1 2023.

• The enterprise sector contributed 92% of Q1 2024 revenues, with strong domestic and international growth.

• The company maintained a strong financial position with equity at PLN 403.3 million and total assets at PLN 519.8 million as of March 31, 2024.

Financial highlights

• Total Q1 2024 revenues: PLN 99.8 million (+12.0% YoY); Poland: PLN 87.7 million (+13.7% YoY); Abroad: PLN 12.1 million (+0.9% YoY).

• Q1 2024 EBITDA: PLN 36.4 million (+12.8% YoY); EBIT: PLN 26.7 million (+13.0% YoY); Net profit: PLN 24.0 million (+18.2% YoY).

• ERP segment sales: PLN 94.9 million (+12.3% YoY); ERP EBITDA: PLN 36.0 million (+13.1% YoY).

• Cash at end of Q1 2024: PLN 72.0 million, up from PLN 53.0 million at year-end 2023.

• Net income per share was PLN 0.72, up from PLN 0.61 in Q1 2023.

Outlook and guidance

• Backlog for 2024 at PLN 317.6 million, representing 83.5% of 2023 sales, up from 82.4% of 2022 sales.

• Management Board recommends a dividend of PLN 2.60 per share for 2023, totaling PLN 86.9 million, pending approval.

• Management considers the financial situation stable, with strong production potential and market position.

• Key external risks include the war in Ukraine, macroeconomic volatility, interest rates, and client investment timing.