Comarch IT sees business stabilisation in group's main segments

"Regarding the structure of sales revenues by industry of our customers, the situation is stable - during the three quarters, exchange rate fluctuations had less of an impact than they did in the third quarter alone. We see a significant development of sales in the ERP sector in Poland, there are significant increases," Taranski said.

"In our main business segments, the stabilisation of business can be seen - there was a slight increase in the telecommunications segment and in finance and banking. In contrast, there was a slight decline in sales of solutions for industrial companies," he added.

In the third quarter of 2024, the value of Comarch Group's sales revenues to TMT customers amounted to PLN 68.2 million (EUR 15.74 mln), down by 8.6 percent year on year. During this period, clients from the finance and banking sector purchased products and services worth PLN 72.8 million (EUR 16.8 mln), down by 12.5 percent year on year.

Sales of ERP solutions to small and medium-sized enterprises in Poland in the third quarter increased by 13.3 percent to PLN 84.59 million (EUR 19.5 mln).

In the third quarter of 2024, the Comarch group generated sales revenues of PLN 428.87 million (EUR 99 mln), down by 5.4 percent year on year.

The group's operating profit in the third quarter amounted to PLN 27.07 million (EUR 6.24 mln), down by 52.1 percent from the prior year period. Net profit attributable to equity holders of the parent amounted to PLN 21.98 million (EUR 5.1 mln), down by 32.2 percent year on year.

Operating profitability was +6.3 percent and net profitability +5.1 percent.

The Comarch group generated EBITDA of PLN 52.13 million (EUR 12 mln), down 36.3 percent year on year.

The operating and net profitability of the Comarch Group's business in the third quarter of 2024 were lower than in the prior year period.

The results achieved by the Comarch Group in the third quarter were influenced, among others, by a 1.3 percent increase in revenue from domestic sales, which exceeded PLN 2.56 million (EUR 590,848). This, in turn, was a result of revenue growth in sales to clients from the SME sector and to clients from the medical sector. Domestic sales accounted for 46.5 percent of the group's total revenue in the third quarter of 2024.

In the third quarter, foreign sales revenue decreased by PLN 27.135 million (EUR 6.3 mln) or 10.6 percent year on year which was mainly related to the strengthening of the PLN against foreign currencies (especially against the USD) during the period. Foreign sales accounted for 53.5 percent of the group's total revenue in the third quarter of 2024.

At the end of October, the company reported that the Filipiak family, together with CVC Capital Partners Fund IX and Anna Prokop, had bought shares in Comarch in a tender offer, representing 98 percent of the capital and 98.9 percent of the votes. The next step for the callers will be to announce a compulsory buyout of shares and delisting Comarch from the stock exchange.

alk/ ao/ nl/