Atende results: excellent Q3
Both in the 3rd quarter and during three quarters of 2018, the Atende Group performed significantly better than in the corresponding periods of the previous year. Compared to 2017, the sales to the public sector more than doubled. This great result was achieved mainly thanks to the dominating company - Atende.
In the 3rd quarter of 2018, the Atende Group earned sales revenue of PLN 78,114 thousand, which represents an increase by 44% y/y. Thanks to larger sales, a better gross profit was earned (PLN 21,271 thousand, 38% increase y/y). Despite the 10% (y/y) rise in the general management costs, resulting from the Group companies’ offer development, there was an improvement in operating result (profit of PLN 5,694 thousand, up by 267% y/y), EBITDA (profit of PLN 7,741 thousand, up by 151% y/y) and net profit (PLN 4,363 thousand, up by 358% y/y). Sales revenue earned by the Group during 3 quarters of 2018 was also significantly higher than in the previous year (PLN 192,774 thousand, up by 31% y/y). Cumulatively, in the period of three quarters of 2018, the operating profit stood at PLN 5,611 thousand compared to the loss of PLN 96 thousand in the previous year, EBITDA increased by 140% y/y and amounted to PLN 11,532 thousand, while net profit amounted to PLN 3,339 thousand, as compared to the loss of PLN 843 thousand in the previous year.
In sectoral terms, the biggest increase in sales took place in the public sector. Revenue in the three quarters of 2018 reached the level of PLN 82,852 thousand, up by 116% y/y. Largely, this is the result of Atende’s execution of projects for the defence sector and uniformed services. In addition, significant sales increases (both in Q3 and cumulatively in three quarters of 2018 - 25% and 40% y/y respectively) were achieved by Sputnik Software offering software for local government units.
Revenue from customers of the industry, trade and services sector increased by 41% y/y in the three quarters of 2018 (cumulatively by 21% y/y). This relates to projects implemented in the energy sector, including delivery of network equipment and services, as well as the implementation of security systems by Atende S.A., and activities related to smart energy grids implemented by Atende Software.
I’m really glad we achieved such great results in Q3. It was mainly due to the excellent performance of Atende S.A. I’m also delighted that the affiliates which had achieved relatively weaker financial results (contributing, however, to the consolidated result) were eager to execute their strategic goals consisting in implementing innovative products: AI elements (in the case of Atende Software) supporting content recognition in real time as regards the flagship product, i.e. Internet TV; Phoenix Systems implemented in the Kazakh market a smart meter, and a reading concentrator in the Russian market (both readers consistent with the proprietary technology of defining meters through software - the so-called Software Defined Meters); Ominchip ran a pilot sales of its proprietary air cleanliness meter (A2CC), and then conducted some pilot installations of the system for managing and clearing electrical car charging. It is also worth mentioning that in Q3 Atende S.A carried out its first commercial block-chain technology implementations. The sum of these achievements is the result of many months of work, and it is likely to translate into noticeable financial results in the coming months, says Roman Szwed, President of the Management Board of Atende S.A.
In the 3rd quarter of 2018, the consolidated sales margin on subscription services amounted to PLN 9,906 thousand, which represents an increase by 11% y/y.
Atende S.A. is one of the leading IT companies in Poland, listed on the Warsaw Stock Exchange since 2012. It has been implementing technologically advanced IT projects for over 25 years. It specialises in providing high quality IT infrastructure services, network integration, IT outsourcing, cloud computing and cyber security. As a Capital Group, Atende addresses its dedicated offer to telecommunications operators, public administration bodies, the medical sector, the energy sector and the multimedia industry.