Romanian tech group AROBS closes 2023 with a 43% increase in turnover, reaching RON 428 million

AROBS Transilvania Software (BVB: AROBS), the largest technology company listed on the Bucharest Stock Exchange, posts a consolidated turnover of RON 428 million (EUR 86 mln) in 2023, a 43% increase compared to 2022, normalized EBITDA of RON 93 million (EUR 18.8 mln), a 22% appreciation, and a normalized net profit of RON 52 million (EUR 10.5 mln), down 3% compared to 2022, amid the integration process of the companies acquired in the last two and a half years in the group.

"2023 was a year marked by a turbulent market in the technology area, this was seen in most of the IT companies listed both internationally and locally. It was a year of massive optimizations in IT with pressure on companies' profitability indicators. In this context, we at AROBS have continued to grow despite these adversities. It was a year in which we worked intensively on effectively integrating the companies we brought under the AROBS umbrella as of the end of 2021. Transformation and integration are complex and lasting processes, the absolute priority being the functionality of synergies between the various entities and the capitalization based on the strengths of each company to improve the offer of services and software products. The integration process is an operational alignment and a shared culture that focuses on innovation, service and product excellence, and open communication. Such a process may temporarily impact the financial results, but, in the long term, this approach is vital for our strategy to build a solid foundation for sustainable development," stated Voicu Oprean, founder and CEO of AROBS.

Regarding the 2023 turnover at the consolidated level, software services registered a 44% increase compared to 2022, contributing 81% to turnover, RON 345 million. The products segment software registered a 20% increase due to attracting new clients, contributing 16% to the turnover, RON 71 million. Also, the third business line, the integrated systems segment, contributed 3% to the turnover, generating revenues of RON 12 million. This business segment focuses on implementing hardware and software services for the public sector.

"The performance recorded in 2023 at the turnover level is the direct result of our expansion and diversification strategy and the continuous investments in technology and the professional development of our colleagues within AROBS. Despite the challenges of integrating acquired companies, we have been able to capitalize on growth opportunities in a challenging market environment. The financial indicators, although influenced by the integration process, reflect prudent management of resources. In 2024, one of the main concerns of our management team remains the continuation of the integration process and the optimization of operations at the level of the companies in the group", stated Bogdan Ciungradi, CFO of AROBS.