Comarch (CMR) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue increased 6.8% year-over-year to PLN 878.5 million, driven by growth in telecom, ERP, and finance/banking sectors, with strong performance in Poland and DACH regions.

• Net profit attributable to shareholders dropped to PLN 23.5 million in H1 2024 from nearly PLN 50 million in H1 2023, mainly due to lower financial results and currency impacts.

• EBITDA for H1 2024 rose by 25.7% year-over-year to over PLN 87 million, with Q2 2024 EBITDA at PLN 51.96 million, up 28.6%.

• A public tender offer for all shares was announced, with the board confirming the offer price as fair.

• The Group maintains a strong international presence, executing projects in over 70 countries and employing more than 6,300 professionals.

Financial highlights

• Q2 2024 sales revenue exceeded PLN 443 million, up from PLN 395 million in Q2 2023.

• Operating profit for H1 2024 was PLN 37 million, up from PLN 23.8 million in H1 2023; Q2 2024 operating profit more than doubled year-over-year.

• Group EBIT for H1 2024 was PLN 45.1 million, down from PLN 64.7 million year-over-year; net margin at 2.7%.

• Cash flows remained stable, with standard seasonal effects and a notable inflow from the sale of an aircraft.

• Basic and diluted EPS for the Group were PLN 2.89, compared to PLN 6.12 in H1 2023.

Outlook and guidance

• Order backlog growth remains stable at 2–3% year-over-year, indicating steady business activity and a positive sales outlook.

• Ongoing investments in IT products, especially AI, ERP, loyalty, e-invoicing, and financial services, continue as planned.

• No major new infrastructure investments planned for 2024; sales revenue distribution expected to mirror 2023, with higher sales in Q4.

• The Group anticipates continued geographic and product diversification, with no dependency on a single customer.