Romanian tech company AROBS posts a 67% increase in turnover, in the first nine months of 2023
AROBS Transilvania Software (BVB: AROBS), the largest technology company listed on the Bucharest Stock Exchange, posts a consolidated turnover of 349.8 million lei (EUR 71 mln) in the first nine months of 2023, a 67% increase compared to the same period last year, normalized EBITDA of 65 million lei (EUR 13 mln), a 10% surge, and a normalized net profit of 49.4 million lei (EUR 10 mln), a 4% appreciation compared to the same period of last year.
"The current period in the IT&C industry is full of challenges. However, we have successfully navigated the current economic context thanks to our long-standing partnerships in services and software products, the experience and expertise of our teams, and the responsible management of our finances. We are resilient and have the necessary resources and a high degree of adaptability in a challenging market context. We continue to implement our organic growth plan combined with strategic acquisitions and greenfield investments, enabling us to integrate new competencies across the group and explore new technology specializations. We continuously seek synergies and approach existing clients holistically, considering the experience accumulated by the companies in the group," stated Voicu Oprean, founder and CEO of AROBS.
Regarding the consolidated turnover, in the first nine months of the current year, software services registered a 62% increase compared to the same period in 2022, with a 76%, 266.3 million lei, contribution to turnover. The software products segment registered a 22% increase, amid attracting new clients and contributed 15%, 51.3 million lei, to the turnover. Also, the group's latest business line, AROBS Systems, contributed 9% to the turnover, generating revenues of 30.3 million lei. This business segment focuses on implementing hardware and software services for the public sector.
"At the group level, we have adopted a rigorous approach to managing our financial resources, even in the context of accelerated expansion through M&A transactions. One of our main objectives in this expansion process was efficiently using all financing sources. Therefore, at the end of the third quarter of the year, we recorded a bank financing debt ratio to normalized EBITDA of 1.14, with the group having a solid financial position, which gives us the flexibility to capitalize on new opportunities in the market, for the continued sustainable development of the AROBS group," stated Bogdan Ciungradi (opening photo), CFO of AROBS.
In the first nine months of 2023, normalized EBITDA amounted to 65 million lei, representing a 10% increase compared to the same period last year. At the level of this indicator, the activity of existing companies in the group until June 2022 contributed 74%. Companies acquired as of June 2022 had a 25% contribution.
In the almost two years of activity on the capital market, the company has grown rapidly organically, by greenfield investments as well as by carrying out nine M&A transactions, which brought into the group companies operating in the same industry and which brought added value by consolidating and expanding the areas of expertise and the geographical footprint of AROBS.
AROBS Transilvania Software is listed on the Main Market of the Bucharest Stock Exchange, Premium category, as of September 25, 2023. Currently, the company's market capitalization is approximately 820 million lei.
Note: The consolidated financial results of the AROBS Group for the first nine months of 2023 are published in RAS format (Romanian Accounting Standards). The company will publish financial results in IFRS format, starting with the preliminary financial report related to 2023.
*This is a press release.