Vercom plans further acquisitions and development of Message Flow brand in foreign markets

Listed IT company Vercom, a technology group specialising in providing global SaaS communication services, is planning further acquisitions and the development of the Message Flow brand in foreign markets, company representatives told a press conference.

"Regarding acquisitions, we are aiming for the turn of 2024/2025, probably the first half of 2025 is more realistic, especially as large acquisitions are processes that take time," said Vercom's CFO Lukasz Szalasnik.

"In terms of markets we are looking very broadly, we are trying to grow the business globally, so we are looking more [at potential acquisitions - PAP ed.] from the perspective not of the company's localisation itself, but from the perspective of the customer portfolio," he added.

In the second quarter of 2023, Vercom launched a new product, Message Flow - a platform dedicated to medium and larger customers.

"We plan to develop the Message Flow brand in foreign markets as well. These tasks are ahead of us," said company's board member, Tomasz Pakulski.

"I think we will be able to slowly show these activities in the international area in the following periods (...)," he added.

The number of Vercom's new clients in the first quarter of 2024 reached a record level of 5,700, an increase of 24 percent year on year. At the end of the first quarter, the total number of companies served exceeded 85,100 entities.

Meanwhile, the growing activity of Enterprise clients, translated into a 40 percent year-on-year increase in revenue to PLN 104.6 million (EUR 24.6 mln). The PAP Biznes consensus was for revenues of PLN 101.2 million (EUR 23.8 mln).

In the first quarter of 2024, Vercom reported a 33 percent year-on-year increase in adjusted EBITDA to PLN 23 million (EUR 5.4 mln) while maintaining a near 100 percent conversion rate of EBITDA to net cash inflows from operations. Analysts surveyed by PAP Biznes had expected adjusted EBITDA of PLN 23.1 million (EUR 5.4 mln).

Net profit increased by 72 percent year on year, exceeding the level of PLN 16 million (EUR 3.8 mln) with a net margin increase of approximately 3 percentage points. The PAP Biznes consensus was for a net profit of PLN 14.2 million (EUR 3.3 mln). Vercom's gross margin increased by 26 percent year on year to PLN 51 million (EUR 11.9 mln).

According to the resolution of the general meeting, Vercom will pay a dividend of over PLN 35 million (EUR 8.2 mln) for 2023 on May 31, which translates into PLN 1.6 (EUR 0.38) per share. This implies a dividend increase of approximately 42 percent year on year.

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