Comarch presents financial results for the first quarter of 2023
Consolidated revenues of the Comarch Group for the first quarter of 2023 reached PLN 427.6 million, an increase of PLN 11.3 million over the result in the same accounting period last year. Operating profit stood at PLN 19.3 million, down 55 percent compared to the first quarter of 2022, and net profit attributable to shareholders of the parent amounted to PLN 23 million, down 28.9 percent from the first three months of last year. The group generated PLN 42.2 mln. EBITDA profit compared to PLN 65.7 million profit a year earlier.
Operating profitability was +4.5 percent, and net profitability was +5.4 percent. In the period described, domestic sales accounted for 42.3 percent and foreign sales accounted for 57.7 percent of total revenues.
Business in the segment of systems for financial institutions and banks grew dynamically. Their sales increased by 37.8 percent and reached 72.2 million zlotys. Sales of ERP solutions in the domestic market also maintained double-digit growth. SME companies purchased business management solutions worth 83.2 million zlotys, an increase of more than 22.2 percent and 15.1 million zlotys. In contrast, sales to SME customers in the DACH region declined 24.3 percent to 22.6 million zlotys. The Group also improved sales in the industrial&utilities segment, where sales of IT solutions and services amounted to PLN 55.3 million, growing by 5.4 percent year-on-year. On the other hand, sales revenues in the trade and services sector remained at a similar level to the same period in 2022, with a result of PLN 57.4 million.
The value of the Comarch Group's sales revenue to TMT customers amounted to PLN 92.5 million, down by PLN 13.3 million, or 12.6 percent, compared to the first quarter of 2022, but the sector still holds the highest share of Comarch's sales - more than 21.6 percent. Revenues in the medical segment decreased by 7.3 percent and amounted to PLN 14.4 million. Sales to public administration institutions amounted to 22 million zlotys, down 7.2 million from a year ago.
- The Comarch Group in the first quarter of 2023 observed reduced dynamics of demand for IT solutions and operated in an environment of significant increases in operating costs (salaries, energy, third-party services). The growth in sales revenue was slower than the growth in operating expenses, and as a result, the profitability of Comarch's operations declined - says Konrad Taranski, vice chairman of the board and chief financial officer of Comarch.
In pursuit of its business diversification strategy, Comarch invariably conducts a variety of investment projects. Two of them will have their market debut in the near future.
One of them is an e-commerce platform – wszystko.pl - Consumer testing is currently underway, involving Comarch Group employees and more than 11,000 vendors who have registered and verified an account on the portal. The launch of the service will take place in late June/early July - Konrad Taranski announces.
The second project is the construction of a data center in the US in Mesa near Phoenix (Arizona).
- The investment is related to Comarch's need for geographic diversification of its critical infrastructure and plans to expand its business operations in the US market. Testing and acceptance procedures for the data center are currently underway, and the facility is scheduled to begin operations in the near future - says Konrad Taranski.