In the first quarter of 2018, in comparison with the results from the first quarter of the previous year, the Atende Group achieved much better revenue; the operating and net results were recorded at a similar level. Sales revenue increased by 34% y/y and amounted to PLN 57,120 thousand. Higher sales were reported by both subsidiaries (by 62% y/y) and the parent company, Atende (by 25% y/y). At the same time, we recorded an increase of the consolidated margin on sales for subscription-based services by 11% y/y, and the margin generated covered 49% of the overhead costs of the Group.
Owing to higher sales in the first quarter of 2018, gross profit on sales was higher by 5% than in the first quarter of the previous year and amounted to PLN 15,020 thousand. The net result was similar to the result for the previous year (loss of PLN 123 thousand as compared to the profit of PLN 17 thousand in the previous year). The companies from the Group are doing increasingly well, contributing to the consolidated margin in almost the same degree (48%) as the parent company.
Due to the seasonal nature of sales, which is characteristic of the IT market, the results of the Group in the first quarter are, as usual, the lowest. It should be stressed that the numbers of newly signed contracts and new customers are high, which should bring good sales results in the following quarters. We are particularly happy about the growth of the margin on sales of subscription-based services, as it testifies to the successful performance of one of the strategic goals of the Group defined in the Strategy adopted at the beginning of 2018 — says Roman Szwed, President of the Management Board of Atende S.A.
Sector-wise, the biggest contribution to the growth of the revenue level of the Group was brought by the public sector and the industry, trade and services sector. Revenue from customers of the public sector increased by 148% y/y (to PLN 22.8 m). This growth is a consequence of Atende’s constant fulfilment of the strategic assumption to focus in this sector on selected, difficult and technically demanding projects.
The combined impact of subsidiaries on the consolidated profits at operating, gross and net levels, achieved in the first quarter of 2018, was positive. Among subsidiaries, significant positive contribution to the result was brought by Sputnik Software and Atende Software.
The increase in general and administrative costs amounted to 8% y/y and was related to the investment in the development of the Group's offering. Among other activities, two new departments were established at Atende S.A. — the Innovation and Development Department, which will manufacture products based on blockchain and artificial intelligence technologies, and the Mobile Solutions Department, which will focus on the development of an offering for the telecommunications sector in respect of key mobile technologies.