Asseco South Eastern Europe SA
WSE:ASE
Asseco South Eastern Europe SA
Asseco South Eastern Europe SA is a holding company, which engages in the provision of information technology and consulting services. The company is headquartered in Warsaw, Woj. Mazowieckie and currently employs 3,874 full-time employees. The company went IPO on 2009-10-28. The firm is also involved in the infrastructure projects, third-party software tools delivery, trainings and professional services. Moreover, the Company proposes outsourcing services. Asseco South Eastern Europe SA offers its own software and solutions for such sectors as banking, mobile banking and authentication, telecommunication and general business. The firm also provides supplies, installation and maintenance services in the field of Automated Teller Machines (ATM) and payment terminals. The company is also engaged in the provision and implementation of information and communication (ITC) systems and equipment. The firm operates numerous subsidiaries in Southern and Eastern Europe and forms Asseco South Eastern Europe SA Capital Group. As of September 14, 2012, it acquired 98.68% of shares of SigmSigma Danismanlik ve Uygulama Merkezi AS.
Asseco South Eastern Europe SA is a holding company, which engages in the provision of information technology and consulting services. The company is headquartered in Warsaw, Woj. Mazowieckie and currently employs 3,874 full-time employees. The company went IPO on 2009-10-28. The firm is also involved in the infrastructure projects, third-party software tools delivery, trainings and professional services. Moreover, the Company proposes outsourcing services. Asseco South Eastern Europe SA offers its own software and solutions for such sectors as banking, mobile banking and authentication, telecommunication and general business. The firm also provides supplies, installation and maintenance services in the field of Automated Teller Machines (ATM) and payment terminals. The company is also engaged in the provision and implementation of information and communication (ITC) systems and equipment. The firm operates numerous subsidiaries in Southern and Eastern Europe and forms Asseco South Eastern Europe SA Capital Group. As of September 14, 2012, it acquired 98.68% of shares of SigmSigma Danismanlik ve Uygulama Merkezi AS.
One-Off Write-Offs: ASEE booked significant non-cash write-offs and revenue reversals of EUR 7.5 million, mainly related to underperforming operations in India and Dubai, which materially impacted Q3 operating profit.
Adjusted Profit Growth: Excluding these one-offs, Q3 operating profit grew by 21% year-over-year, driven by strong performance in banking and dedicated solutions.
Payment Segment Headwinds: The payment business faced pressure, particularly from a slowdown in Turkish e-commerce where major clients switched to in-house payment gateways, as well as weak results in India and Dubai.
Banking & Dedicated Solutions Strength: Banking had its best quarter in years, with nearly EUR 4 million higher revenue and EUR 2 million more in operating profit year-over-year. Dedicated solutions also saw improved profitability from proprietary solutions.
Cash Flow Recovery: Operating cash flow recovered strongly, reaching nearly EUR 39 million for the first three quarters, a marked improvement over last year.
Backlog & Outlook: The backlog for Q4 is up 20% overall, with particularly strong momentum in dedicated and banking solutions. Payment backlog growth is slower due to Turkey.
Cost & Margin Actions: Management is implementing cost optimization in Turkey and focusing on margin improvement in dedicated solutions, but does not expect short-term effects.
