The Comarch Group published its consolidated financial results for three quarters of 2016. In the nine months, the Group generated sales revenues of PLN 740.4 M or up PLN 11.5 M on the previous year equivalent period. The sales revenues for Q3 2016 were similar to the revenues generated in Q3 2015 and amounted to PLN 224.0 M. The operating profit was PLN 10.5 M versus PLN 4.5 M a year earlier; the net profit amounted to PLN 8.3 M and was PLN 7.9 M higher than in Q3 2015.

The operating profit YTD was PLN 45.7 M and was by PLN 3.1 M lower than the one generated in three quarters 2015. Net profit attributable to the shareholders of the parent entity was PLN 21.0 M versus PLN 36 M in the previous year. The Group generated EBITDA of PLN 93.1 M which was PLN 4.6 M higher than in the equivalent period in the previous year.

In nine months of 2016, development of business in new markets, primarily in South America and Asia, generated growth of exports by 14.4% versus the equivalent period of 2015 as a result of which exports accounted for over 59% of all revenues. As a result of the reduced orders from the public and medical sector, domestic sales revenues dropped by PLN 43.5 M, or 12.5%. However, in Q3 the value was higher by PLN 5.1 M, or up 5.3% versus Q3 2015. In Q3 the largest growth of the sales revenues was in the sector of trade and services (up PLN 13.3 M, or 39%). There was also a positive change in the sales to industrial customers that grew by PLN 1.1 M, or 4% versus Q3 2015. Additionally, Comarch improved sales to SMEs and in the DACH region. The growth of revenues was PLN 2.4 M (or 11.4%) and PLN 0.6 M (or 2.5%), respectively. Additionally, customers in the TMT sector purchased goods and services for PLN 36.1 M which marked a drop of PLN 16.3 M (or 31.2%) versus Q3 2015.

In nine months this year, the largest part of the revenues, or PLN 181.5 M was accounted for by sales to the telecommunications sector and despite a drop by PLN 17.3 M they continued to constitute the largest part of the Group’s overall revenues. Sales to the sector of trade and services displayed the fastest growth, primarily due to contracts with new customers in foreign markets. The revenues of the sector grew by 15.6% and amounted to PLN 123.6 M. Customers in the finance and banking sector purchased products and services amounting to PLN 6.5 M (or 6.8%) more than in the corresponding period of the previous year. This is also an effect of acquiring new customers in foreign markets.

- Due a large customer portfolio and major diversification of income sources, Comarch generates solid financial performance, notwithstanding periodic fluctuations of market conditions in various sectors of the economy. The Group has all the time been developing its business in Poland and abroad, in particular in Western Europe and in both Americas. In Poland, we started selling IT smart city systems; in Kraków and Warsaw we launched pilot programmes that cover the implementation of solutions that monitor information on free parking spaces on an ongoing basis. We strongly focus on our smart city and e-health programme - “Health City”. By implementing pilot projects we wish to show local authorities the way IT products support management of the healthcare system and medical documentation in the region to improve the quality of the services, says Konrad Tarański, Deputy President of the Management Board and Finance Director at Comarch SA.

In Q3 2016 Comarch continued its policy to increase headcount. At the end of September, the Group employed (exclusive of Cracovia employees) 5,374 persons, or 337 persons more than as at 31 December 2015. This is primarily related to the end of the summer programme of student internship and establishment of regular cooperation with the participants.

Additionally, Comarch continues investments in its infrastructure that were started previously. In Kraków, we continue building the SSE7 office building and a new laboratory and production “IoT Lab” is under construction to be commissioned in Q4 2016. Also in Q4 2016 a modern office building in Łódź will be completed. Additionally, in Lille, France an investment project is under way in a new Comarch Data Center. The facility will be commissioned in Q2 2017.