Asseco South Eastern Europe (ASE) Q1 2025 earnings summary

Executive summary

• Strong Q1 performance driven by Payment Solutions, e-commerce, and merchant business, with improved ATM results and new acquisitions supporting growth.

• Banking segment exceeded expectations, especially in core banking and channel solutions.

• Dedicated solutions underperformed due to project delays, particularly in Serbia and Romania, and lower third-party solution sales.

• Net profit attributable to shareholders fell 24% to PLN 35.8 million, mainly due to a PLN 6.5 million loss on the sale of a subsidiary.

• The Group continues to expand geographically and through acquisitions, now operating in 27 countries.

Financial highlights

• Revenue grew 13% year-over-year, with 80% of growth from own activities, mainly in payments; sales revenues reached PLN 400.3 million (+9%).

• Payment segment contributed €5 million growth; Payment Solutions revenues up 28% year-over-year to EUR 52.8 million.

• EBIT increased 8% year-over-year in euro, 4% in PLN; EBITDA up 9% in euro and 5% in PLN.

• Net operating profit declined due to a €2 million lower result in financial activity and a PLN 6.5 million loss on subsidiary disposal.

• Operating cash flow for Q1 2025 exceeded €15 million, up from less than €1 million last year; cash and cash equivalents at period end: PLN 304.6 million.

Outlook and guidance

• Positive outlook for the year, with backlog coverage at 13-14% for all business lines and expectation of continued growth in e-commerce, merchant business, and independent POS.

• Anticipation of new long-term contracts in dedicated solutions, particularly in intelligent transport systems.

• Expansion plans for e-commerce and POS business into Spain, supported by recent acquisitions.

• Management expects ongoing investments in new products; no financial forecasts for 2025 were published.