Sticking to the plan

Bourse-listed Asseco Poland, an IT solutions provider, saw consolidated revenues of zł.414.6 million, compared with zł.209.8 million last year. Net profit grew from Q1 2007's result of zł.23 million to zł.48.5 million this year.

Sales of the firm's own programs and services grew to zł.183.5 million, compared with zł.89.6 million last year, and the key consumers of these products were public administration, banks and other financial institutions. Sales in Poland comprised 57 percent of total sales.

Asseco Poland also increased its contract portfolio in the quarter. It signed a letter of intent and a contract with Deutsche Bank for two different deals, and signed a contract with Mazowiecki Bank Regionalny. It is currently realizing contracts with Allianz Biznes Polska, Getin Bank, GBW, VW Bank, and Bank Polskiej Spółdzielczości, among others. 

The company is developing through acquisitions as well. It merged with Prokom Software in April and last week signed a merger agreement with domestic peer ABG.

Asseco also wants to make acquisitions in Germany, Spain and the Balkan states. This expansion plan will be supported by floating two subsidiaries on the Warsaw bourse, with Asseco South Eastern Europe listing in Q3 of 2008 and Asseco Germany in Q2 2009. According to Asseco, the two subsidiaries have a chance to turn net profits of E14 [zł.47.5] million and E4 [zł.13.5] million this year, respectively.

Recent activity shows the firm has stuck to the strategic plan it presented last year, according to Jakub Nowakowski, an analyst from Xelion financial advisers. "Still, the company coped very well given the difficult conditions on the bourse," he noted.

Asseco's prospects for growth are very promising since the financial sector, which is a key source of revenue for the firm, is doing very well, Nowakowski said. "I don't see any threats for the company in the near future."