Asseco Poland S.A. (ASOZY) Q3 2024 earnings summary

Executive summary

• Sales revenue reached PLN 12.6 billion for the first three quarters of 2024, with non-IFRS operating profit up 5% and net profit up 7% year-over-year, despite currency headwinds and higher financial expenses.

• Excluding currency effects, revenue increased by 6% and non-IFRS operating profit by 11% year-over-year, reflecting strong underlying business performance.

• The group completed multiple acquisitions in Israel, US, India, UAE, Portugal, and Ukraine, supporting growth and diversification.

• Continued development of innovative products and adaptation to new regulations (DORA, NIS2, eIDAS2, CSIRE, KSeF).

• The group maintained a strong market presence in 62 countries, with 33,761 employees and a market capitalization of PLN 7.1 billion.

Financial highlights

• Non-IFRS EBITDA reached PLN 1.95 billion, and non-IFRS net profit attributable to shareholders was PLN 400 million, up 4% year-over-year.

• Double-digit growth in Q3 operating profit (non-IFRS +15%, EBIT +24%) compared to the same quarter last year.

• Order backlog for proprietary software and services increased 10% to PLN 13.8 billion.

• Gross profit margin increased to 22.3% from 21.9% year-over-year; EBITDA margin rose to 15.1% from 14.5%.

• Cash generated (LTM) was PLN 2.8 billion, with a free cash flow of PLN 2.2 billion and a cash conversion ratio of 109%.

Outlook and guidance

• Backlog growth of 10% in fixed rates, with PLN 13.2–13.8 billion of income already contracted, supports a positive outlook for Q4 and 2025.

• Management expects Q4 to be strong, continuing historical seasonality, with no major one-off events anticipated.

• Business perspectives are positive, driven by regulatory adaptation and digitalization projects.

• The Group is preparing for the implementation of the EU's Global Minimum Tax (Pillar Two) in 2025 and is analyzing its impact.

• External factors such as geopolitical risks, inflation, currency fluctuations, and IT market demand are being closely monitored.