Asseco Poland S.A. (ASOZY) Q2 2024 earnings summary

Executive summary

• H1 2024 saw a 6% profit growth year-over-year, excluding foreign exchange effects, with 90% of revenues from non-Polish customers.

• Sales reached PLN 8.4 billion, with net profit up 2% to PLN 235 million and a market capitalization of PLN 7.4 billion.

• Order backlog increased by 7% year-over-year, reaching PLN 13,068 million as of August 20, 2024.

• Seven acquisitions were completed, expanding presence in payments and new markets like India, Dubai, Israel, UAE, Ukraine, US, Portugal, and Bosnia.

• The Group operates in 62 countries and employs 33,490 people, with diversified business across segments and no single client exceeding 10% of sales.

Financial highlights

• Non-IFRS operating profit was PLN 981 million; non-IFRS net profit was PLN 258 million; reported net profit attributable to shareholders was PLN 235 million.

• EBITDA reached PLN 1.27 billion, with a non-IFRS EBITDA margin of 15.1% and EBIT margin of 11.7%.

• Cash generated (LTM) was PLN 2,895 million, with a free cash flow of PLN 2,308 million and a cash conversion ratio of 117%.

• Sales revenues for H1 2024 were PLN 8,397 million, down 1% year-over-year; proprietary software and services contributed PLN 6,626 million.

• Basic and diluted EPS for shareholders was PLN 3.45, up from PLN 2.77 year-over-year.

Outlook and guidance

• Positive outlook for H2 2024, with expectations of continued growth in order backlog and revenues.

• Anticipated rebound in public sector sales in Slovakia and Czech Republic.

• Management expects to catch up on delayed results in the energy sector within 12 months.

• No threat to going concern for at least 12 months, despite ongoing geopolitical risks.

• The Group is preparing for new tax and reporting obligations effective from 2025.