Comarch Group published its consolidated financial results for the four quarters of 2016 year. In twelve months, the Group generated sales revenues worth PLN 1.11bn, or PLN 19.1m less than in the same period a year ago. The operating profit amounted to PLN 115.1m and was up PLN 2.1m, i.e. 1.8% than in 2015. EBITDA reached PLN 178.1m, or PLN 11.5m up on the figure in the same period of the previous year.

The revenue from sales for the fourth quarter of the year reached PLN 372.1m. The operating result amounted to PLN 69.4m and was PLN 5.2m higher than in Q4 2015. The net profit increased by PLN 7.8m, i.e. about 18 per cent and amounted to PLN 51.3m.

- In 2016, we focused on sales of proprietary solutions. Comarch has been investing for years in the development of new and existing systems and IT equipment. Each year we invest 10-15 per cent of the sales revenue in research and development to make our products more competitive and attractive to customers around the world. Although we recorded a decline in the total revenues, the result on the sales of own solutions and services increased by more than 5 per cent. This means that our strategy is delivering results – says Konrad Tarański, Vice President and Chief Financial Officer of Comarch SA.

In 12 months of 2016 growth of the Group's activities on foreign markets brought an increase in export sales of 14.5 per cent compared to 2015. As a result, foreign sales accounted for almost 60 per cent of the total revenues, reaching PLN 660.8m. The domestic sales to the public and medical sectors decreased by PLN 78.1m (47.6 per cent). This was due to a slowdown in public procurement decision-making.

- As regards administration of the public sector in Poland, 2016 was a period of lower tender activities, as seen in the sales revenues of businesses. Projects co-financed under the old EU perspective ended, while those in the 2014-2020 budget were delayed. At Comarch we expected this deadlock and used that period to prepare products and sales to operate within a new perspective. Thanks to the consistently implemented strategy of diversification both in terms of market segments and geographic areas are not so much dependent on the situation in the public procurement sector on the Polish market – explains Konrad Tarański.

The largest increase in the sales revenue in 2016 was observed in the industrial sector (PLN 33m, or 29.5 per cent). Contracts with customers in this sector generated for Comarch revenues of PLN 146.1m. Sales to customers in the trade and services sectors also saw a positive development, increasing by PLN 24.3m, or 15.3 per cent, when compared to the previous year figure. Additionally, Comarch improved sales to customers in the small and medium-sized enterprises in Poland and in the DACH region.  The increase in the sales revenue amounted to PLN 10m (i.e. 9.3 per cent) and PLN 8.7m (i.e. 8.5 per cent), respectively. On the other hand, customers from the finance and banking sectors bought products and services worth PLN 163.8m, which represents an increase of PLN 12.7m y/y (i.e. up 8.4 per cent). The next largest part of the Group's revenue is accounted for by the telecommunications sector, despite a decline in the sales when compared to 2015. Sales solutions for companies from this sector generated PLN 276.3m in revenues.

In 2016, Comarch continued its policy to increase its headcount. At the end of December 2016, the Group had 5,304 staff, without the employees of Cracovia, i.e. 267 persons more than as at 31 December 2015. It is primarily linked to the completion of the summer programme, student internships, and establishment of permanent co-operation with the programme's members.

Additionally, Comarch continues its investments started in previous years to expand its own infrastructure. Adaptation of part of Comarch's buildings for the purposes a laboratory room and production "IoT Lab" ended in Kraków, and construction of an office building SSE7 is underway, which should be completed in Q4 2017 year. At the beginning of 2017, a modern office building was opened in the city of Łódź. In addition, in the French city of Lille an investment project is underway in another Comarch Data Center. Commissioning of the facility is scheduled for Q2 2017.

More information about Comarch:
Comarch was founded in 1993 in Kraków, Poland. It carries out projects for the leading Polish and global brands in the most important sectors of the economy, including: telecommunications, finance, banking, and insurance, trade and services, infrastructure, public administration, industry, health care, and in the sector of small and medium-sized enterprises. The services of Comarch have been used by tens of thousands of global brands in over 60 countries on 5 continents, including: Heathrow Airport, BP, Carrefour, Heineken, Goodyear, Pepsi, Vodafone, T-Mobile, Telefonica, E-Plus, KPN and MTS, BNP Paribas Fortis, Alior Bank SA (Carlo Tassara Group), Allianz, Aviva, AXA, Banque Populaire des Alpes, BRE Bank, BZ WBK (Santander Group), CitiFinancial (Citigroup), Delta Lloyd Life, Deutsche Bank PBC, and ING Insurance.

Comarch products have been featured in the reports by Gartner, IDC, Forrester, and Frost & Sullivan. Each year Comarch invests 10-15 per cent of its revenues in innovative projects. In 2015, the amount was PLN 138m. It currently employs over 5,300 experts in 81 offices in 28 countries from Malaysia through Europe to Chile