The Comarch Group published its consolidated financial results for the three quarters of 2017. In the nine months, the Group generated sales revenues of PLN 751.6 M, i.e. by PLN 11.2 M more than in the equivalent period in the previous year. The sales revenues for Q3 2017 were higher than the revenues generated in same period in 2016 by PLN 36.5 M and amounted to PLN 260.5 M. Operating result was PLN 7.2 M versus 10.5 last year.

Good results for Q3 2017 were mainly the consequence of increased sales of services to the TMT sector customers from the non-European countries, amounting to PLN 64.9 M, which represents an increase by PLN 28.8 M, or by 79.9%. compared to the corresponding period of the previous year. There was also an increase of PLN 9.3 M, or 27.9 %, in sales in the finance and banking sector. Customers purchased products and services worth PLN 42.6 M. Contracts with SMEs in Poland resulted in revenues of PLN 28.9 M, or up PLN 5 M, i.e. 20.8% more than in Q3 2016. Revenues from sales to customers in the trade and services sector dropped by PLN 6.9 M, i.e. by 14.4%. In Q3 2017, there was a stagnation in public procurement market, with revenues remaining at a low level which was similar to last year’s level of PLN 16.2 M. Revenues from sales to customers in the medical sector increased by PLN 0.8 M, i.e. by 22.6%.

After three quarters, operating profit was PLN 2.9 M, net profit attributable to shareholders of the parent entity amounted to PLN 7.2 M. In the period under consideration, the Comarch Group generated EBITDA of PLN 49.3 M, i.e. by PLN 43.8 M less than in the equivalent period in the previous year.

Intensive business activities on foreign markets, mainly in South America and Asia, translated into an increase in export sales in the nine months by PLN 2.5 M compared to the same period in 2016. Foreign sales continue to account for a major part of the Group's total revenues, reaching the level of almost 59%. Additionally, Comarch improved its sales on the Polish market by nearly PLN 9 M. This result was achieved mainly through contracts with clients from the financial sector. The total sales of the Comarch products and services to the financial industry both in Poland and abroad increased by PLN 33.3 M, i.e. by 32.7%, and amounted to PLN 135 M.

Sales to the telecommunication sector accounted for the largest part of revenues, i.e. PLN 174.3 M, and despite a drop of PLN 7.2 M it is still the largest part of the Group's total revenues. For the past several years, Comarch has been steadily developing its sales to customers in the sector of small and medium-sized enterprises (SME) in Poland. From the beginning of the year, revenues amounted to PLN 83 M, which represents an increase of PLN 10 M, i.e. by 13.6% year-to-year. Sales to industrial customers also saw a positive development, increasing by PLN 4.6 M, i.e. by 5%, compared to 2016.

In the first nine months of 2017, revenues from sales to public sector clients were lower by PLN 13.6 M, i.e. by 26%, which is an effect of the continued stagnation in the public procurement market. There was also a drop in sales to customers from the SME-DACH sector (by PLN 8.0 M, i.e. by 9.6%) and to other customers (a drop by PLN 3.1 M, i.e. by 14.0%). The drop in revenues in the SME-DACH sector is a temporary effect and is the consequence of different project situation in the current year and the appreciation of the zloty in 2017.

­“We considered Q3 2017 to have been successful. The Comarch Group has significantly increased its sales revenues and achieved a positive operating result, similar to that of the previous year. This was achieved despite the absence of significant other operating revenues during this period, as was the case in the previous year. The situation in the public sector should be noticed: the current year is weak in terms of sales, which can be seen in the results of the Comarch Group, but we can see some signs of recovery in this segment. Due to the recent contracts (among others with the Ministry of Justice), the value of the order book for the next year has significantly increased. Comarch's offer was also selected as the most advantageous tender in the tender procedure for the maintenance of KSI ZUS. Regardless of the above, the Group develops its operation on foreign markets, starting its business in other countries. Only this year we have launched companies in Saudi Arabia, Japan and Mexico. In Latin America, we employ about 80 people because we want to increase even more our presence there. At the same time, we are developing our portfolio of products for customers from the Polish market, both private entrepreneurs and government and local government authorities”, says Konrad Tarański, Vice-President of the Management Board and Chief Financial Officer of Comarch SA.

In the nine months of 2017, the number of employees in the Comarch Group increased by 3.2%, mainly as a result of the implementation of the program of student summer internship. As at 30 September 2017, the Comarch Group, excluding employees of MKS Cracovia SSA, employed 5,475 people, i.e. by 171 persons more than as at 31 December 2016.

Additionally, Comarch continues its investments started in previous years to expand its own infrastructure. In Kraków, building SSE7 – which is to be commissioned in Q4 2017 – is being constructed, and in the French city of Lille an investment project is underway in another Comarch Data Center. Commissioning of the facility is scheduled for the beginning of 2018.