Operating profit of Asseco SEE Group up 20 per cent in Q3 2020
Double-digit growth in key indicators:
- Double-digit net profit growth totaling EUR 7.1 million, up 21%
- Double-digit operating profit growth which amounted to EUR 8.4 million, up 20%
- Double-digit EBIDTA growth totaling EUR 12.8 million, up 17%
- Backlog growth in revenues for Q4 2020 reaching EUR 58.2 million, up 14%
Warsaw, 29 October 2020: Asseco South Eastern Europe Group, (WSE: ASEECOSEE, ASE) has announced third-quarter 2020 financial results which are once again better compared with a corresponding period of the last year, driven by organic growth and improvement in efficiency.
In Q3 2020 the company achieved double-digit growth in key indicators despite sales revenues amounting to EUR 51.2 million, less by 3%, compared with the third quarter of 2019. This decrease resulted from decreased sales revenues in Dedicated solutions business unit especially in the business line responsible for resale of infrastructure and third party solutions, and amounted to EUR 13.9 million, less by 30% compared with the third quarter of the previous year. It was offset by growth in sales revenues in Banking business unit which amounted to EUR 11.8 million, up 15.7% and in Payment business unit where sales revenues amounted to EUR 25.5 million, up 12% compared with a corresponding period of 2019. Bigger share of the revenues of proprietary solutions in sales revenues and increased efficiency resulted in improved efficiency of the company. Operating profit of ASEE Group in Q3 2020 amounted to EUR 8.4 million, up 20% compared with the third quarter of the previous year. EBITDA totaled EUR 12.8 million, up 17%.
Net profit of ASEE Group in Q3 2020 reached EUR 7.1 million, up 21% compared with the third quarter of the previous year. Backlog for Q4 2020 of ASEE Group in sales revenues reached EUR 58.2 million, up 14% compared with the last year.
- In the third quarter of 2020 we generated growth in the Payment business unit as well as improved efficiency in the Banking business unit. In the Payment business unit growth was mainly driven by e-Commerce business line and by POS related services new business lines such as SinglePOS - IPD (independent POS deployment) network and ERC (electric cash registers). The demand for multichannel solutions and mobile banking together with higher efficiency translated into further growth in profitability of the Banking business unit. We are pleased with no significant impact of COVID-19 on overall ASEE and Payten business – commented Piotr Jeleński, President of the Management Board of Asseco South Eastern Europe S.A.
Q3 2020 financial results per business unit:
Payment business unit (Payten)
The biggest sales revenues in Q3 2020 were recorded by the Payment business unit and amounted to EUR 25.5 million, up 12% (EUR 2.8 million) compared with Q3 2019. Bigger sales influenced the increase in operating profit which amounted to EUR 4.2 million, up EUR 0.3 million (almost +9%) compared with a corresponding period of the previous year. EBITDA in Q3 2020 amounted to 7.5 million, up EUR 0.7 million (+10%) compared with a corresponding period of the previous year.
Banking business unit
Sales revenues of the Banking business unit amounted to EUR 11.8 million in Q3 2020, up EUR 1.6 million (+16%) compared with a corresponding period of the previous year. Sales revenues growth was driven by core banking and other solutions business line and by mobile solutions. Operating profit of the Banking business unit was up as much as 53% (almost EUR 1.1 million) compared with Q3 2019 and amounted to EUR 3.1 million in Q3 2020. EBITDA was up EUR 1.1 million (+43%) and reached EUR 3.7 million.
Dedicated solutions business unit
In Q3 2020 sales revenues from the Dedicated solutions business unit amounted to EUR 13.9 million, less by EUR 5.9 million (-30%) compared with Q3 2019. Despite a considerable decrease in sales revenues both operating profit and EBIDTA remained flat compared with a corresponding period of the previous year and amounted respectively to EUR 1.1 million and EUR 1.5 million.