Asseco Poland S.A. (ASOZY) Q4 2024 earnings summary

Executive summary

• Achieved record revenues of PLN 17.1 billion in 2024, up 1% year-over-year, with proprietary software and services comprising 79% of sales and over PLN 3.1 billion in income from these areas.

• Net profit attributable to shareholders reached PLN 520 million, up 8% year-over-year, despite challenging macroeconomic and geopolitical conditions.

• Non-IFRS operating profit rose 6% to PLN 2.1 billion; non-IFRS net profit reached PLN 577 million.

• Growth driven by both organic expansion and 14 acquisitions across multiple geographies and sectors, with 4 more in Q1 2024.

• Maintained leadership in digitization for finance, public institutions, ERP, and other IT solutions.

Financial highlights

• Revenues up 1% year-over-year to PLN 17,132 million; excluding FX effects, up 6%.

• Non-IFRS EBITDA increased 4% to PLN 2,688 million; non-IFRS EBIT up 6% to PLN 2,108 million.

• Currency fluctuations negatively impacted income by PLN 718 million, partially offset by organic growth and acquisitions.

• Free cash flow for the group was PLN 2,132 million, with a cash conversion ratio of 102%.

• Dividend recommended at PLN 3.94 per share, totaling PLN 269 million (DY: 2.5%).

Outlook and guidance

• Order backlog for 2025 up 9% to PLN 11,099 million, indicating strong future revenue visibility and growth in fixed and variable rates for software and proprietary services.

• FX impacts are expected to diminish, with profitability improvements likely to be sustained.

• Strategy remains focused on proprietary software, organic growth, and M&A, with continued emphasis on AI, cybersecurity, and digital transformation.

• Dividend policy remains stable, with plans to distribute proceeds from own share sales in two tranches over two years, subject to regulatory approvals.

• Management expects to maintain leading positions in strategic sectors and further develop ERP, payments, and trust services.