Financial Results in Q1-Q4 2009

In the fourth quarter of 2009, the Comarch Group achieved very favourable financial results. Revenue from sales amounted to 233.1 million PLN, operating profit was 26.1 million PLN and net profit attributable to the company’s shareholders amounted to 27.6 million PLN.

Over four quarters of 2009, the Comarch Group achieved revenue from sales in the amount of 730.6 million PLN (an increase of 29.6 million PLN, i.e. 4.2 % compared to 2008). Due to good financial results achieved in the fourth quarter of 2009, operating profit amounted to 15.8 million PLN and net profit attributable to the company’s shareholders amounted to 33.3 million PLN. EBIT margin amounted to 2.17 % and net margin was 4.56 %.

The financial results achieved in the fourth quarter of 2009 were very satisfactory; however they were worse than in 2008. In 2009, operating profit decreased by 30.1 million PLN and net profit attributable to the company’s shareholders was lower by 165.8 million PLN compared to 2008; however we have to bear in mind the significant impact of one-off events on earnings in 2008 and 2009. Worse financial result in 2009 is mostly the result of a loss incurred in SoftM Group as well as functioning costs of companies that were established by CCF FIZ and the conducting of new IT projects. As a result of the consolidation with the SoftM Group, operating profit achieved by the Comarch Group in 2009 was decreased by 29.3 million PLN, and net profit attributable to the company’s shareholders was decreased by 20.1 million PLN. An encouraging point to be noted is that following significant losses incurred by SoftM during the first three quarters of 2009, results achieved by SoftM in Q4 2009 were positive. The impact on operating and net profit of the companies established by Comarch Corporate Finance FIZ was respectively minus 8.3 million PLN and minus 0.9 million PLN. Other one-off events had a less significant effect on the financial results in 2009.

It is noteworthy that in 2009 the Comarch Group achieved an increase in revenue despite the economic slowdown and a decrease in demand for IT products and services. These occurrences were particularly noticeable in sales of hardware and third party software. In comparison to 2008, the Group’s revenue from sales of computer hardware decreased by 69 million PLN, i.e. 59.9 %, and sales of third party software decreased by 41.1 million PLN, i.e. 30.5 %. Increase in sales was only possible due to high revenue from sales of proprietary software and services, and consolidation of SoftM’s revenue. As a result of the consolidation with the SoftM Group, in 2009 Comarch Group revenue increased by 169.7 million PLN.

For the purpose of an increase in the operating margin, the Group continues a policy of employment stabilisation at the current level, balanced costs reduction as well as an increase in operating effectiveness. As of 31st of December, 2009, the Comarch Group had 2,921 employees (excluding employees in SoftM Group and MKS Cracovia SSA), i.e. 12 more than at the end of the previous year (an increase of 0.4 %). As of 31st of December, 2009, the SoftM Group had 339 employees, i.e. 67 less than at the end of the previous year. The good financial results, achieved during 2009, confirm the effectiveness of the Group's strategy – a strategy that is based on:

  • the sale of IT solutions, most of which are developed in-house,
  • the sale of an increasing number of products on international markets, especially in Western Europe,
  • the stable improvement of operational performance through the ongoing improvement of procedures and cost rationalisation.

In the fourth quarter of 2009, the Comarch Group denoted a significant increase in revenue from sales of proprietary services (an increase of 18.5 %) compared to the fourth quarter of 2008. In the fourth quarter of 2009, sales of computer hardware and third party software were significantly lower than the same quarter of the previous year (a decrease of 26.5 million PLN, i.e. 61.1 % and 77.4 million PLN, i.e. 72.4 % respectively). Significantly lower orders for educational software and computer hardware in the public sector were the reason for this.

In 2009, there was significant growth in sales in the telecommunication, media and IT sector (an increase of 33.9 million PLN, i.e. 29.5 % compared to the previous year), as well as in the industry and utilities sector (an increase of 43.4 million PLN, i.e. 68.6 %). Sales to small and medium sized enterprises in Poland increased by 1 million PLN, i.e. 2 %. The most significant decrease in sales was to customers in the public sector (a decrease of 144.4 %, i.e. 70.9 %) due to the above-mentioned lack of orders for educational software and computer hardware in the public sector in 2009. Sales to customers in the trade and services sector decreased by 5 million PLN, i.e. 7.6 % and in the finance and banking sector they decreased by 29.3 million PLN, i.e. 20 %.  Due to the acquisition of the SoftM Group, and therefore a 132.1 million PLN increase in sales to the small and medium-sized enterprises sector in DACH region countries, there was a change in the share of sales within particular sectors of the Comarch Group.

In 2009, export sales of the Comarch Group increased dynamically by 172.0 million PLN, i.e. 116.6 % compared to 2008. The share of these sales in total sales reached 43.7 % compared to 21.0 % in the previous year. Revenues from export sales comprise 169.7 million PLN achieved from SoftM Group’s sales. Excluding the sales of SoftM Group, export sales would account for 26.7 % of the total sales of the Comarch Group, i.e. 149.9 million PLN.

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