Comarch – Financial Results for 2016. Company increases its exports.

Comarch Group published its audited financial results for 2016. Last year, Comarch generated sales revenues of PLN 1,112m, or PLN 18.8m less than in the same period a year ago. Nearly 60 per cent of all revenues are generated from sales on foreign markets which accounts for growth of exports by 14.5 per cent compared to 2015. The operating profit amounted to PLN 116.9m and was up PLN 3.8m, i.e. 3.4 % than in 2015. EBITDA reached PLN 179.9m, or PLN 13.4m up on the figure in the same period of the previous year. In 2016 Kraków-based Company increased its headcount by 267 new employees.

- Another year in a row the Comarch Group has shown solid financial performance. Sales increase on foreign markets, development of in-house products, and investments into expansion of the infrastructure and the headcount increase demonstrate the Company's stable condition. We have been strengthening a position of a global provider of IT solutions that are our flagship products: loyalty programmes, electronic workflow solutions, and systems for IT companies and financial institutions. Additionally, we have been developing into new areas of IT business. We are successful in delivering IT systems for the medical sector, and also tools for precise marketing and Smart City solutions. We are aware that the era of the Internet of Things has started. That is why we have rolled out our own laboratory and production room, which will allow us being active players, also in that part of the market and offering own electronic and software solutions, says Konrad Tarański, Vice-President of the Management Board of Comarch SA and Chief Financial Officer.

The largest increase in the sales revenue in 2016 was observed in the industrial sector customers (up PLN 33,3m, or 29.5 per cent). Contracts with customers in this sector generated for Comarch revenues of PLN 146.1m. Sales to customers in the trade and services sectors also saw a positive development, increasing by PLN 24.3m, or 15.3 per cent, when compared to the previous year figure. Additionally, Comarch improved its sales to customers in the small and medium-sized enterprises in Poland. Increase of sales revenue amounted to PLN 10m (i.e. 9.3 per cent). On the other hand, customers from the finance and banking sectors bought products and services worth PLN 163.8m, which represents an increase of PLN 12.7m y/y (i.e. up 7.8 per cent). The next largest part of the Group's revenue comes from the telecommunications sector, despite a decline in the sales when compared to 2015. Sales of solutions for business from that sector generated PLN 276.6m in revenues, which accounts for nearly 25 per cent of Comarch's entire business.

In 12 months of 2016 growth of the Group's activities on foreign markets brought an increase in export sales of 14.5 per cent compared to 2015. As a result, foreign sales accounted for almost 60 per cent of the total revenues, reaching PLN 661.1m. The domestic sales decreased by PLN 102.4m (18.5 per cent). This was due to a slowdown in public procurement decision-making.

In 2016, Comarch continued its policy to increase its headcount. At the end of December 2016, the Group had 5,304 staff, without the employees of Cracovia, i.e. 267 persons more than as at 31 December 2015. It is primarily linked to the completion of the summer programme, student internships, and establishment of permanent co-operation with the programme's members.

Additionally, Comarch continues its investments started in previous years to expand its own infrastructure. Adaptation of part of Comarch's buildings for the purposes of a laboratory room and production “IoT Lab” ended in Kraków, and construction of an office building SSE7 is underway, which should be completed in Q4 2017 year. At the beginning of 2017, a modern office building was opened in the city of Łódź. In addition, in the French city of Lille an investment project is underway in another Comarch Data Center. Commissioning of the facility is scheduled for Q3 2017.