Gloster 2024 first half: growth driven by exports and recurring revenues Half-year profit after tax exceeds last year's full-year result

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Gloster Infokommunikációs Nyilvánosan Működő Részvénytársaság (company registration number: 13-10-042012; registered office: 2142 Nagytarcsa, Csonka János utca 1/A. A/2. ép.; hereinafter: Company, Gloster) hereby informs its esteemed investors of the following in accordance with the relevant legislation, in particular Act CXX of 2001 on the Capital Market (hereinafter: Tpt.) and the General Business Rules of the Budapest Stock Exchange.

Gloster 2024 first half: growth driven by exports and recurring revenues

Half-year after-tax profit exceeds last year's full-year result

September 25, 2024 – Gloster Infocommunications Plc. , which was listed in the standard category of the Budapest Stock Exchange in January this year, saw its Gloster Infocommunications Plc. sales revenue increase by 90% to HUF 6.2 billion in the first half of 2024, with revenue from foreign sales growing by 144% to HUF 2.4 billion. Compared to the same period last year, EBITDA grew by 199% to HUF 522 million. This significant growth was driven by the acquisition of P92 IT Solutions Kft. completed by the company in August 2023 and the merger of Systemfarmer Zrt. and Gloster Cloud Zrt. signed on February 16, 2024.

According to the half-yearly report published for the first time in accordance with IFRS standards, Gloster's after-tax profit of HUF 309 million in the first half of 2024 shows a spectacular increase compared to last year's half-year loss of HUF 49 million, but is comparable to the group's full-year after-tax profit for 2023, which was HUF 305 million. The significant growth is driven by the group's growth strategy, which was key to increasing revenues and profits: the acquisition of P92 IT Solutions Kft. in 2023 and the merger with Systemfarmer Zrt. announced in 2024 contributed significantly to the group's improved results in the first half of 2024. Management expects that the integration of Systemfarmer Zrt. will increase Gloster's sales and profits, as the merger means that the group now operates as the largest Hungarian-owned Microsoft cloud service partner, which will attract additional customers and projects.

Profits come from abroad

In Gloster's report for the first half of 2024, export sales revenue showed an outstanding 144% increase, reaching HUF 2.4 billion. Exports account for an increasing share of the company's total sales revenue, and revenues realized in foreign currency significantly reduce the risks arising from exchange rate exposure. The growth in export sales revenue is of strategic importance to Gloster, and its success is demonstrated by the fact that exports accounted for 38.1% of the company's total sales revenue in the first half of the year. This means that Gloster has already achieved its strategic target for 2026, which was set at 30-40% of exports, in 2024. Management expects further growth in international markets.

Successful expansion into international markets is the result of a conscious strategy. The Group's strategic acquisitions, such as Minero IT Hungary Kft. and P92 IT Solutions Kft., have enabled Gloster to enter new, profitable markets and expand its international customer base. In recent years, global partners such as BMW, Audi, and SONY Music have joined the Group's client base, further increasing the company's foreign currency-based revenues and long-term financial stability.

Focus on regular income

According to management, the significant 125% increase in regular revenues in the first half of the year is one of the most important indicators of Gloster's financial stability. Regular revenues, which rose to HUF 4.8 billion (compared to HUF 2.13 billion in the same period last year), are recurring, predictable sources of income typically associated with subscriptions, service contracts, or long-term customer relationships, making these revenues less susceptible to short-term market fluctuations.

The increase in recurring revenues indicates that the Company is performing well in its core activities and that further growth is based on sustainable foundations. Recurring revenues accounted for 77.4% of total sales (compared to 65.3% last year), which clearly shows that the group is increasingly building on strategic, long-term customer relationships and recurring service contracts.

Gloster shares are tracked by ERSTE Ltd. with a target price of HUF 1,183 and a buy recommendation.

About Gloster

Gloster is a broad-spectrum international IT service provider listed in the standard category of the Budapest Stock Exchange. Over its more than 20-year history, it has evolved from a hardware garage company into a software-focused international medium-sized enterprise. Thanks to its intensive growth strategy, Gloster has completed eleven transactions since 2018 and expanded its activities into the areas of system integration, cloud solutions, and international software development services. The group currently employs a team of nearly 350 people. According to its audited consolidated financial statements for 2023, its revenue was HUF 10.3 billion, its adjusted EBITDA was HUF 976 million, and its after-tax profit was HUF 414 million.

Nagytarcsa, September 25, 2024.

Gloster Infocommunications Plc.

Further information:

Dr. Adrienn Karlovich-Szabó

Investor Relations Officer

karlovich.szabo.adrienn@gloster.hu