Asseco Business Solutions (ABS) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached PLN 302.9M, up 10.5% year-over-year, driven by higher sales of proprietary products.

• Net profit after Q3 2024 was PLN 74.8M, a 14.1% increase year-over-year.

• EBITDA rose 10.0% to PLN 113.4M, and EBIT increased 9.0% to PLN 83.5M after Q3 2024.

• EBITDA margin for the nine months was 37.4%.

• The company maintained a strong equity position, with equity representing 71.7% of total liabilities as of 30 September 2024.

Financial highlights

• Domestic revenue grew 12.7% to PLN 268.1M, while international revenue declined 4.2% to PLN 34.8M.

• Segment receipts from sales rose 10.8% to PLN 286.9M, with ERP segment EBITDA up 9.7%.

• Net profit margin improved to 24.7% for Q1–Q3 2024, up from 23.9% in 2023.

• Cash flow from operating activities in Q3 2024 was PLN 91.0M; cash decreased by PLN 36.3M during the period.

• Dividend of PLN 2.60 per share paid in July 2024 from 2023 profit.

Outlook and guidance

• Backlog for 2024 stands at PLN 373.3M, representing 98.0% of 2023 sales, up from 96.2% the previous year.

• 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.

• Internal focus remains on product quality, sales activities, and talent retention.