In Q1 2017, the Atende Group and Atende S.A. recorded significant increases in results as compared to the corresponding period of 2016. Consolidated sales revenues amounted to PLN 42,712 thousand, which represents a y/y increase by 36%. As compared with Q1 2016, gross profit on sales increased by 27% and amounted to PLN 14,364 thousand. The margin on subscription services – which the company pays significant attention to – covered more than 50% of the costs. All this has been achieved under relatively disadvantageous macroeconomic conditions.
An improvement was recorded for consolidated operating result of the Atende Group (decrease in loss to PLN 242 thousand, from PLN 2,115 thousand in the previous year), EBITDA (profit of PLN 1,503 thousand, compared to a loss of PLN 592 thousand in Q1 2016) and net result (profit of PLN 17 thousand, compared to a loss of PLN 2,006 thousand in the previous year).
The costs, which are higher than in the previous year, are related to the strengthening of sales departments and sales support, primarily in the parent company, and to expansion of the scale of operations and introduction of new products to the offer. ′The strengthening of sales departments brought the expected effects. Sales to all sectors increased, of which to the financial sector by as much as 84%,′ said Roman Szwed, President of the Management Board of Atende S.A. ′In the telecommunications and media market, key for the Atende Group, sales higher by 32% was achieved.′
It is worth noting that due to the seasonal nature of sales, results achieved by the Atende parent company in the first quarter are still usually the lowest in the year. Nonetheless, comparing this year’s results with the previous year, in Q1 2017, Atende, similarly to the whole Group, recorded significantly better results. Revenue increased by 38% y/y, and the gross profit on sales amounted to PLN 8,249 thousand (up by 25% y/y). An improvement was recorded for operating result (loss of PLN 997 thousand, compared to a loss of PLN 1,669 thousand in the previous year), EBITDA (profit of PLN 79 thousand, compared to a loss of PLN 883 thousand in the previous year) and net result (loss of PLN 575 thousand, compared to a loss of PLN 1,811 thousand in the previous year).
Among subsidiaries, Atende Software and Sputnik Software had a significantly positive impact on the results, with Atende Medica, Phoenix Systems and Energy Data Lab having a negative one, and the impact of other companies (OmniChip, TrustIT, A2 Customer Care) remaining neutral.
The consolidated companies were joined by A2 Customer Care sp. z o.o., registered in January, where the issuer has taken up 60% of shares for PLN 360 thousand. The aim of the company is the performance of consulting tasks as well as implementation and development of IT products that improve management of the customers’ businesses based on advanced software, in particular billing systems. The company is already implementing the first projects in the energy sector. It is also planning to develop Polish e-mobility in the area of IT infrastructure management and settlement systems. ′The new company perfectly matches Atende’s strategy for 2016–2017, which assumes the Group’s development in the energy sector. Owing to the investment in A2 Customer Care, the Atende Group has expanded its offer to include forward-looking, niche services with potential to expand overseas,′ Roman Szwed added.
It is worth noting that although activities of central government institutions and state-owned companies in the field of IT investments remain limited, sales to the public sector still increased by 55%. Local government units and hospitals started to initiate tender procedures. The above should have a positive effect on the results of Sputnik Software and Atende Medica in the following periods.
′We are happy that in Q1 2017, the consolidated sales margin for subscription services grew by 17% y/y, which covered the fixed costs of the entire Group in 50%. This is very important to us,′ President Szwed emphasized.
The provision of maintenance services by Atende, multimedia content distribution services by Atende Software, and maintenance services for local government units by Sputnik Software is of greatest importance for the sales of subscription services.