Comarch financial results for the first quarter of 2016

Comarch Group published its consolidated financial results for the first quarter of 2016. Revenues from sales of proprietary software and services increased by 19 percent (229 million PLN. Vs. 192,4 mln PLN) compared to the same period in 2015 and represent 94 percent of total sales. During the first three months of 2016 years, the Group has generated 7.2 million PLN net profit and operating profit amounted to 12.3 million PLN. Comarch continues its strategy of selling proprietary solutions and thanks to a diversification of business activities and presence on foreign markets, the operating margin of the Group in the first quarter of 2016 was at a good level of 5 percent.

Foreign sales accounted for more than 60 percent of the Group's total revenue, 148 million PLN, an increase of 30.6 percent, compared to the first quarter of 2015. This is the result of the execution of a considerable number of contracts concluded in previous periods. The largest number of revenues, 65.3 million PLN. generated sales of solutions for the telecommunications sector (26.9 percent). On the other hand, sales to customers in the retail and service, amounted to 41 million PLN and increased by 9.8 million MLN, 31.1 percent, compared to the first quarter of 2015. Customers in finance and banking sector bought products and services with a value exceeding 8.2 million PLN (2.1 percent) of the result achieved in the same period of the previous year.

- Comarch Group is actively seeking and exploring new markets, including South America and Asia, we continue to invest in new products and services, as well as expanding IT infrastructure. Financial stability guarantees safety activities in the variable macroeconomic situation in Poland and in the world. The Group consciously bear the costs of developing new products and new business segments, as well as developing business in new foreign markets, investing in this way is building a competitive advantage for the future - says Konrad Tarański, Vice President and CFO Comarch SA.

Additionally, in the first quarter of 2016 years, the Group commenced three investments in the development of its own infrastructure. In the French city of Lille, another Comarch Data Center has built. Putting the facility into service is scheduled for the second quarter of 2017 years. On the other hand, in the Krakow Special Economic Zone construction and work has started on the new office building SSE7, this will form part of the complex objects Comarch in Krakow. The office building SSE6 in Krakow, where the hall is formed laboratory-production "IoT Lab" has been completed. Currently the laboratories are under construction: equipment room, surface preparation in specialised laboratories and the purchase of equipment.