Asseco South Eastern Europe (ASE) Q3 2024 earnings summary

Executive summary

• Sales revenues for the 9 months ended 30 September 2024 reached PLN 1,209.5 million, up 5% year-over-year, with net profit attributable to shareholders at PLN 141 million, down 9% year-over-year.

• Payment Solutions segment drove growth, with significant revenue and profit increases, while Dedicated Solutions underperformed due to non-recurring items and project delays.

• New acquisitions in India, UAE, Ukraine, and Portugal contributed to revenue and EBITDA, reflecting ongoing expansion.

• Hyperinflation in Turkey required IAS 29 adjustments, impacting reported results and segment analysis.

Financial highlights

• Operating revenues: PLN 1,209.5 million (+5% year-over-year); Operating profit: PLN 154.6 million (-6%).

• EBITDA: PLN 227.4 million (-2%); Net profit: PLN 144.7 million (-9%).

• Net cash from operating activities: PLN 36.9 million (down from PLN 136.9 million year-over-year).

• Dividend of PLN 85.6 million paid in June 2024.

Outlook and guidance

• Management sees no threats to going concern and expects continued growth, especially in underinvested regions.

• Key risks include geopolitical instability, regulatory changes, inflation, and currency fluctuations, especially in Turkey and Egypt.

• Ongoing investments in R&D, product portfolio expansion, and new market entries are expected to support future performance.