Comarch’s record financial results

The Comarch Group published its consolidated financial results for the four quarters of 2018. Within twelve months Comarch's sales revenues amounted to PLN 1.36bn and were PLN 230m, or 21.3% higher than in the equivalent period for the previous year. Operating profit amounted to PLN 112m, up PLN 53.6m, or 91.8% more than a year earlier. EBITDA grew by PLN 54m to PLN 176.8m.

Comarch’s growth in revenues was due to increasing domestic sales and new foreign contracts. In Poland, sales of ERP systems continued to grow dynamically. After a few years of slowdown in the public sector, there is a major recovery in public institutions implementing IT projects, which contributed to the company’s financial results. Abroad, Comarch performed several large contracts, selling IT solutions to providers of telecommunications services in European and Asian countries.

Revenues from sales for Q4 2018 alone stood at PLN 415.6m. The operating result amounted to PLN 49.9m, while net profit was PLN 29.2m.
The Comarch group operates in over 100 countries all over the world and almost 54% of its revenues are generated on foreign markets.

- The good financial results support the stable position of the Comarch Group, which is resilient to the changing macroeconomic situation in Poland and globally. The Group continues to invest in product development and business activities in other economic sectors. In addition, it works to build structures in foreign markets. The company’s strategy relies on several pillars: business diversification in terms of geographical sales structure and product portfolio; innovations based on R&D activities; and a focus on sales of our own solutions supports our long-term and ongoing development and competitive advantage for the future, says Konrad Tarański, Vice-President and Chief Financial Officer at Comarch.

In 2018 sales to telecommunications companies accounted for the largest part of revenues. The amount was PLN 312.5m with a y/y growth by PLN 47.6m. Customers from the finance and banking sector purchased products and services for PLN 204m; PLN 16.9m more than in 2017. There was growth in sales to customers from the trade and service sector (by PLN 13.4m up to PLN 200m). Business in the industrial and utilities sector generated PLN 138m in revenues which was PLN 4.8m less than a year earlier. Comarch also improved its sales of solutions to SMEs in Poland by PLN 24.7m, or by 18.2%.

- High growth in revenues was recorded in the medical sector, where sales reached PLN 27.3m which was a y/y growth of over 70 percent. We are happy with the upturn in the public administration market. With several large contracts we generated revenues of PLN 194m, which showed growth of over 200 percent against 2017. This shows that Comarch has effectively capitalised on the slowdown in the public contract market that lasted for several years and has developed its product and service portfolio for public institutions. As a result, Comarch has won several large tenders and strengthened its position in IT services for public administration bodies, says Konrad Tarański. We are happy with the growing sales of Comarch's solutions in almost every business segment, which shows the efficiency of the company’s development strategy, adds Tarański.

In 2018 there was major growth in the headcount at Comarch, now in excess of 6,000 people. As of 31 December 2018, the Comarch Group employed 6,040 people, 498 people more than at the end of 2017.