AROBS almost doubled its turnover in the first half of 2023

AROBS Transilvania Software (BVB: AROBS), the largest technology company listed on the Bucharest Stock Exchange, posed a consolidated turnover of RON 241.1 million (EUR 49 mln) in the first half of 2023, a 90% increase compared to the same period last year, normalized EBITDA of RON 43.3 million (EUR 8.7 mln), +9% and a normalized net profit of RON 32.5 million (EUR 6.6 mln), a 1% increase compared to the first half of 2022.

"The first semester of the year was marked by intense activity at the level of all the companies in the group. The increase in turnover is due to both organic growth and the contribution of new companies acquired after the first semester of 2022, AROBS Engineering, Nordlogic Group, Centrul de Soft GPS, AROBS Software Moldova, AROBS TrackGPS Moldova, AROBS Polska, Future WorkForce Global Group, included in the report for H1 2023. Also, an important contribution to this growth was the contracting of new projects in providing software services, the growth of existing teams, and the expansion of collaboration with existing clients. The margins for the EBITDA and net profit indicators are slightly below our targets because we targeted the increase in turnover during the first semester. This is the direct effect of the accelerated development through M&A transactions, when the turnover grows rapidly, and the process of integrating new companies into the group. However, we are confident that we are on the right track in terms of the development of the group and that once we complete the integration processes of the new acquisitions, our profit margins will register increases in line with the budget," stated Voicu Oprean, founder and CEO of AROBS.

Regarding the turnover at the consolidated level, in the first six months of 2023, software services registered an increase of 83% compared to the same period last year, with a 74% contribution to turnover. The segment of software products reported a 21% increase, amid attracting new customers, its contribution to turnover being 14% in H1 2023. Also, the latest business line of the group, AROBS Systems, contributed 12% to turnover, generating revenues of 29.1 million lei. This business segment focuses on implementing hardware and software services and software products for contracting authorities in the public sector. In the first part of the year, AROBS Systems completed a hardware and software solution delivery project to consolidate the databases necessary for the operation of the Customs Integrated Informatics System components. Solutions sold in this segment generate margins between 2% and 8%.

"The next step is the transition to customized solutions for AROBS Systems, which should generate added value business," mentioned Voicu Oprean.