Comarch Group reports drop in FY results

Thursday 8 March 2018 | 12:11 CET | News

The Comarch Group's sales revenues for 2017 amounted to PLN 1.1 billion and were PLN 11.2 million lower than in 2016. Net profit amounted to PLN 43.1 million and was PLN 29.9 million lower than in 2016, and the operating result amounted to PLN 34.5 million, or PLN 82.4 million lower than in 2016. The Group generated EBITDA of PLN 98.6 million.

The Comarch Group's sales revenues for Q4 2017 stood at PLN 350 million. Operating result was PLN 31.6 million, and net profit totaled PLN 35.9 million. 

Comarch increased its workforce last year. As at 31 December 2017, the Comarch Group was employing 5,542 people, equal to 45 more than at the end of 2016.

The Comarch Group operates in 60 counters worldwide and its financial results are affected by the economic situation in Poland and also by global developments, it said. Almost 60 percent of the revenues are generated by Comarch on foreign markets. 

The financial result of the Group was largely affected by foreign exchange losses related to the material appreciation of the Polish zloty against certain foreign currencies and to the continued stagnation in the public procurement market from the administration and health care sectors. The group also experienced wage pressure, which significantly increased operating expenses. 

The largest increase in revenue in 2017 was noted in the financial and banking sector. Comarch’s sales to small and medium-sized enterprises (SMEs) in Poland also are developing very well due to the sale of ERP systems. The next largest part of the Group's revenue comes from the TMT sector, despite a decline in the sales when compared to 2016 which was due to a lower number of contracts implemented in countries of Western Europe. There was a decrease in the sales to customers in the sector of industry and utilities and trade and services. Despite some improvement in the situation in Q4 2017, there was stagnation in the public procurement market throughout the whole year, the company said.

One of the important elements of Comarch’s business strategy is the development of new technologies and business areas, especially for the Internet of Things and medicine. The group expands its e-health offer beyond Poland, carrying out projects in Germany and winning contracts in Italy and countries in the Caucasus.

In 2017, Comarch completed its investments started in previous years to expand its own infrastructure. A new office building was commissioned in Lodz, the construction of the SSE7 office building and a laboratory room and production IoT Lab was completed in Krakow, and another data centre will be soon commissioned in Lille.

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