Ailleron IT counts on improved results in FinTech segment in Q4

"As for whether we will improve the results of the FinTech segment in the fourth quarter, in fact the number of enquiries received by the company is definitely higher than, for example, last year," Ailleron's CFO Tomasz Krol said.

"On the other hand, often tenders that are underway for various reasons are either put on hold or postponed, which means that the tenders we are in and the work that was carried out on our side in the third quarter are primarily intended to lead to a situation where we will be able to sign contracts with clients in the fourth quarter. And indeed - historically the FinTech segment has always been best in fourth quarter," he added.

In the business segment of FinTech the level of realised revenue in the analysed period was at a slightly higher level than in the same period of 2023, amounting to nearly PLN 50.1 million (EUR 11.6 mln). After the three quarters of 2024, the loss on operating profit amounted to PLN 5.9 million (EUR 1.4 mln).

The deputy CEO Piotr Piatosa revealed that a key element of the sales strategy, including overseas, is the sale of the LiveBank solution, and the group is seeing strong customer interest.

"We hope that we will be able to conclude the first contracts within the next period. We hope to increase sales significantly next year, especially of the product in the SaaS model, (…), also we would like this to have a positive impact on our results already next year," Piatosa said.

"At Software Mind, we would like to complete one more acquisition this year. We are mainly looking for European companies or in the United States, these are the two main directions for us," Software Mind's CEO Grzegorz Mlynarczyk said.

He indicated that in the following years, Software Mind would like to continue this investment process and is still looking for interesting targets.

"We are also considering opening up new directions as far as the client base is concerned - this relates to the years 2025-2027, so we will continue to inform on this topic," Mlynarczyk added.

In the group's dominant segment, led by Software Mind, this is the Technology Services segment, between January and September this year sales were realised at a level of approximately PLN 343.2 million (EUR 79.2 mln), a year-on-year increase of nearly 19 percent.

Ailleron had an EBITDA result of PLN 22.8 million (EUR 5.3 mln) in the third quarter of 2024. The company posted an attributable net profit of PLN 3.8 million (EUR 877k), compared to a net loss of PLN 3.9 million (EUR 900k) in the prior year period. The PAP Biznes consensus was for an EBITDA of PLN 21.6 million (EUR 4.9 mln).

The representatives explained that the main factors influencing the level of revenue were, on the one hand, the positive effect of the company's consolidation (starting from the second quarter of 2024) and, on the other hand, the unfavourable effect of the exchange rate, which influences the lower year-on-year revenue denominated in the Polish zloty.

As a result, operating profit amounted to just over PLN 54.6 million (EUR 12.6 mln). This means that Technology Services achieved an operating margin of approximately 16 percent.

The Ailleron group continues to be dominated by export sales at increasingly higher dynamics. This trend has been systematically maintained over recent years. Export sales increased from January to September 2024 to nearly PLN 306.8 million (EUR 70.8 mln) and achieved year-on-year growth of more than 22 percent.

alk/ nl/ ao/