Atende’s performance: Very good 3rd quarter

19.11.2020

The Atende Group’s performance in the 3rd quarter and during three quarters of 2020 was stronger than in the corresponding periods of the previous year. In the 3rd quarter of 2020, its sales revenue decreased by 7% year-on-year but gross profit on sales earned by the Group increased by 18% y/y to PLN 17,840 thousand. Thanks to keeping general and administrative costs relatively flat year-on-year, the Atende Group reported an improvement in operating profit (PLN 2,776 thousand, compared to PLN 40 thousand in the previous year), EBITDA (PLN 6,030 thousand, up by 51% y/y) and net result (profit of PLN 1,811 thousand compared to a loss of PLN 1,400 thousand in the 3rd quarter of 2019).

In the 3 quarters of 2020, consolidated sales revenue was lower than in the previous year (PLN 148,267 thousand, down by 28% y/y). However, higher gross profit on sales, which improved by 4% y/y and amounted to PLN 50,390 thousand, and lower general and administrative costs resulted in the increase in operating profit by 137% y/y to PLN 5,598 thousand, and in EBITDA by 18% y/y to PLN 15,281 thousand. The Atende Group’s net profit for 3 quarters reached PLN 3,090 thousand, compared to a loss of PLN 558 thousand in the previous year.

It is worth noting that the gross profit margin increased both in the third quarter and cumulatively, reaching 32.8% (up by 7.1% p.p. y/y) and 34% (up by 10.5 p.p. y/y), respectively. This reflects a positive phenomenon occurring both in the parent company and in subsidiaries, consisting in a larger share of services and sales of own products. In particular, the increase in the share of services results in a significant increase in the margin and a simultaneous decrease in revenue, which also explains the observed decrease in revenue in the reporting period, compared to the previous year. It should also be borne in mind that in 2020, the results of Sputnik Software are not consolidated (the Issuer sold its shares in the company at the end of 2019).

In the 3rd quarter of 2020, sales revenue of the parent company Atende S.A. remained relatively flat year-on-year, and gross profit on sales increased by 36% y/y (PLN 8,650 thousand). Owing to the reduction in general and administrative costs by 4% y/y, Atende reported a significant year-on-year improvement in operating result (profit of PLN 979 thousand vs a loss of PLN 1,723 thousand in the previous year), EBITDA (PLN 2,640 thousand vs PLN 60 thousand in the 3rd quarter of 2019) and net profit (profit of PLN 820 thousand vs a loss of PLN 2,040 thousand in the previous year).

In conclusion, the performance of both the parent company and the subsidiaries improved compared to the previous year, both in the 3rd quarter of 2020 and on a cumulative basis. This has been achieved despite the economic downturn linked to the pandemic which has slowed down a number of market sectors, but fortunately not all. The sector which managed to defend itself superbly is the Telecommunications and Media Sector, where the Group recorded significant revenue increases, both in the third quarter (21% y/y) and cumulatively in three quarters (10% y/y).

The telecommunications and media market has been our main market for years now. Over recent months, offline activities have moved online, mobile communication and the use of online media have intensified. This means that the needs of telecommunications and media operators are increasing. As the Atende Group, in particular within Atende and Atende Software, we recognise these challenges clearly and support our customers in their dynamic development — said Roman Szwed, President of Atende S.A.

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