2024/09/25
Gloster 2024 first half: growth driven by exports and recurring revenues Half-year profit after tax exceeds last year's full-year result
Regular SUPPORT
A Gloster Infocommunication Public Limited Company (company registration number: 13-10-042012; registered office: 2142 Nagytarcsa, Csonka János utca 1/A. building A/2.; hereinafter referred to as: the Company, Gloster) hereby informs the following to the attention of the Honoured Investors pursuant to the applicable laws, in particular Act CXX of 2001 on Capital Markets ("Act") and the General Business Rules of the Budapest Stock Exchange.
Gloster 2024 first half: growth driven by exports and recurring revenues
Half-year profit after tax exceeds last year's full-year result
25 September 2024 - Gloster Infokommunikációs Nyrt., which was listed in the standard category of the BSE in January this year, increased its net sales by 90% to HUF 6.2 billion, of which foreign sales revenue increased by 144% to HUF 2.4 billion, in the first half of 2024. Compared to the same period last year, EBITDA grew by 199% to HUF 522 million. The significant growth was driven by the acquisition of P92 IT Solutions Ltd., which the company closed in August 2023, and the merger of Systemfarmer Zrt. - Gloster Cloud Zrt. signed on 16 February 2024.
According to the half-year report, published for the first time under IFRS standards, Gloster's after-tax profit of HUF 309 million for the first half of 2024 shows a spectacular increase compared to the loss of HUF 49 million in the first half of last year, but is also comparable to the group's full-year after-tax profit of HUF 305 million in 2023. The significant increase is driven by the group's growth strategy, which has been key to increasing revenues and results: the acquisition of P92 IT Solutions Kft. in 2023 and the merger of Systemfarmer Zrt. announced in 2024 have contributed significantly to the group's improved first half 2024 results. Management expects that the integration of Systemfarmer Zrt. will also increase Gloster's revenues and profits, as the merger will mean that the group is now the largest domestically owned Microsoft cloud services partner, attracting additional customers and projects.
From abroad comes the profit
In the first half-year report of Gloster 2024, export turnover showed an outstanding growth of 144%, reaching HUF 2.4 billion. Exports account for an increasing share of the company's total turnover and the foreign currency revenues significantly reduce the risks from foreign exchange exposure. Export revenue growth is of strategic importance for Gloster, and its success is demonstrated by the fact that the share of exports in the company's total revenue reached 38.1% at the half-year. This means that Gloster has already met its strategic target for 2026, which set an export share of 30-40%, in 2024. Management expects further growth in international markets.
Successful expansion in 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, lucrative markets and expand its international customer base. In recent years, global partners such as BMW, Audi, and SONY Music have been added to the group's client base, further increasing the company's foreign exchange revenues and long-term financial stability.
Focus on regular income
Management believes that the significant increase in recurring revenues of 125% in the first half of the year is a key indicator of Gloster's financial stability. The recurring revenues, which increased to HUF 4.8 billion (compared to HUF 2.13 billion in the same period last year), are recurring, predictable revenue streams that are typically linked to subscriptions, service contracts or long-term customer relationships, making these revenues less exposed to short-term market fluctuations.
The growth in recurring revenues indicates that the Company is performing well across its core activities and that further growth is built on sustainable foundations. The share of recurring revenues reached 77.4% of total revenues (compared to 65.3% last year), demonstrating the Group's increasing reliance on strategic, long-term customer relationships and recurring service contracts.
Gloster's shares are followed by ERSTE Befektetési Zrt. with a target price of 1.183 HUF and a buy recommendation.
About Gloster
Gloster is a broad-spectrum international IT services provider listed in the standard category of BSE. In its more than 20-year history, it has evolved from a hardware garage company into a software-focused international medium-sized company. Thanks to its intensive growth strategy, Gloster has completed eleven transactions since 2018 and expanded its activities into systems integration, cloud solutions and international software development services. The group currently employs a team of nearly 350 people and, according to its audited consolidated accounts for 2023, had revenues of HUF 10.3 billion, adjusted EBITDA of HUF 976 million and a profit after tax of HUF 414 million.
Nagytarcsa, 2024. september 25.
Gloster Infocommunications Plc.
More information:
dr. Adrienn Karlovich-Szabó
Investors relations officer
