- In Q1 2024, Ailleron Group recorded stable consolidated revenues of PLN 106.7 million, a 3% decrease year-over-year. This decline was significantly influenced by the systematic strengthening of the Polish złoty against foreign currencies, resulting in sales figures for the reported quarter being approximately PLN 8.0 million lower based on average exchange rates.
- The Group reported an adjusted EBITDA of PLN 16.4 million (a 5% increase year-over-year) after excluding PLN 2.6 million in transaction costs related to the M&A process of acquiring the US company Prosoft LLC (owner of the number8 brand), compared to PLN 15.6 million in the same period in 2023.
- The adjusted operating profit amounted to PLN 12.8 million, while net profit was approximately PLN 10.0 million, marking an over 24% improvement in operational performance compared to the same period last year.
- Export sales for the 3M 2024 period amounted to nearly PLN 81.9 million, accounting for 77% of total revenues.
- The Technology Services segment, operated by Software Mind, achieved sales of PLN 90.2 million throughout the 3M 2024 period. The operating result of this segment was burdened by one-time costs from the M&A process. Consequently, the adjusted operating profit was over PLN 15.2 million. This segment saw an increase in operating margin to 17% in the first quarter of this year.
- The FinTech – Financial Technology Services segment generated sales revenues of PLN 16.0 million (a 7% increase year-over-year).
- At the beginning of April, Ailleron signed an agreement with Bank Pekao worth approximately PLN 9.6 million gross. The first payment installment of PLN 4.8 million has already been executed by Bank Pekao.
- Ailleron Group observes a growing demand for its services, having renewed most of its existing contracts in Q1 this year.
Despite the challenges posed by currency fluctuations and a temporary slowdown in customer spending on technology solutions, Ailleron Group maintained stable performance in Q1 2024. Tomasz Król, Member of the Board and CFO of Ailleron S.A., emphasized the significant impact of the strong Polish złoty on the Group’s revenues and results.
In the FinTech segment, sales revenue amounted to PLN 16.0 million (a 7% increase year-over-year). The segment’s net operating loss was PLN 2.6 million due to seasonal factors. The company completed its R&D work on products like LiveBank in 2023, meaning no related costs were activated in Q1 2024, unlike the previous year. The agreement with Bank Pekao S.A., worth approximately PLN 9.6 million gross, included a payment of half the amount by the bank and resolved any legal disputes, positively impacting the segment’s results from Q2 2024 onward.
The Technology Services sector, through Software Mind, achieved sales of PLN 90.2 million in 3M 2024. This segment’s operating result was affected by one-time costs of PLN 2.6 million related to the M&A process of Prosoft LLC. The acquisition increased Software Mind’s revenue share from the US market to nearly 50%, significantly boosting Ailleron Group’s business. The adjusted operating profit was over PLN 15.2 million.
Grzegorz Młynarczyk, President of Software Mind and Vice President of the Board at Ailleron S.A., highlighted the strategic importance of the USD 40.6 million acquisition of Prosoft LLC in March 2024, which strengthens the Group’s structure and diversifies its portfolio, increasing the number of specialists to over 1,800. The Prosoft LLC results will be reflected in the Group’s consolidated results from Q2 2024. Młynarczyk expressed confidence in Software Mind’s growth plan, aiming for another acquisition in key markets in 2024.
Ailleron leverages technological trends and its extensive structure to deliver services regardless of client location. Software Mind supports scale-ups and industry leaders with high-quality IT services and notes a market revival in the USA, particularly in new fund investments in startups, one of Software Mind’s client groups.
