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Comarch’s Q1 2019 Financial Performance

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The Comarch Group has published its consolidated financial results for Q1 2019. Revenues from the sales of software and own services amounted to PLN 338.7m, PLN 66.7m higher than in the equivalent period of 2018. The operating profit amounted almost to PLN 21m, while EBITDA grew by 146.3% versus Q1 2018, and amounted to PLN 41.2m.

The Comarch Group's good financial results are the effect of growing sales revenues abroad, primarily on European and Asian markets, and of increasing domestic sales, mainly of ERP-class systems and an improved situation in public administration.
The largest part of the revenue (PLN 83.3m) was generated by sales of solutions for telecommunications operators (accounting for almost 25% of the total revenues). The sales revenues for this group of customers increased by 28% in relation to the first three months of 2018. Growth resulted primarily from last year’s high-value contracts with customers from Asia and Western Europe. The Group also noticed a major increase of sales revenues from systems for small and medium-sized enterprises in Poland. This year, customers purchased products and services amounting to almost PLN 45m, 19.5% more than in the corresponding period of the previous year.

The situation on the public procurement market also improved materially. The sale of systems for public administration generated revenues of PLN 36.7m, 120% more than in the previous year. On the other hand, there was a decrease of sales to customers from the medical sector (PLN 2.1m, or 23%), and from the finance and banking sector (PLN 2m, or 4.5%).
There was a growth in the sales of loyalty solutions, EDI and XaaS to customers from the commercial and service and industrial sectors by PLN 12.6m and PLN 13.9m, respectively.

- Comarch has shown good financial performance. The Company's stable position supports its future development. We have been maintaining the rate of investment in new and existing IT products; for several years we have been spending about 15% of our overall revenues on R&D works. Last year, we completed an intensive program of infrastructural investments, and we commissioned our data storage center in Lille, France, as well as the SSE7 office building on the Company’s campus in Kraków. This year, we plan to start new infrastructural investments, such as a data center in the United States, says Konrad Tarański, Vice-President of the Management Board and Chief Financial Officer at Comarch.

- Additionally, we have been developing our business by investing in human capital. Every year we create new jobs and increase our headcount. In Q1 2019 we hired new 101 people, adds Konrad Tarański.