AROBS financial results as of September 30, 2024: consolidated turnover of RON 306 mln and net profit of RON 16 mln
AROBS Transilvania Software (BVB: AROBS), the largest technology company listed on the Bucharest Stock Exchange, reports consolidated turnover of 306.2 million lei as of September 30, 2024, with an EBITDA of 43.4 million lei and a net…
AROBS Transilvania Software (BVB: AROBS), the largest technology company listed on the Bucharest Stock Exchange, reports consolidated turnover of 306.2 million lei as of September 30, 2024, with an EBITDA of 43.4 million lei and a net profit of 16.1 million lei.
“If at the end of 2023 we anticipated potential stagnation in the automotive industry, by the end of the second quarter, the outlook began to suggest a downturn scenario, although the full implications were still unclear. Nevertheless, we responded promptly by implementing cost optimization measures and restructuring our organization, particularly in departments affected by reduced demand for our software services in 2024, and we significantly reduced group-level administrative costs. The results of these measures are already reflected in our Q3 2024 results. Through these measures, we continue to streamline internal processes and eliminate redundancies, thereby increasing operational efficiency. At the same time, instead of focusing exclusively on cost reduction, we ensure that savings are reinvested in innovation and enhancement of our services and products to consolidate our market position and remain competitive in the software services sector. Going forward, we are focused on integrating technologies that address our clients' most pressing needs – cybersecurity, exponential technologies such as AI, RPA, and data engineering, as well as R&D,” stated Voicu Oprean, Founder and CEO of AROBS.
Regarding the performance of the Group’s business segments, the "Software Services" segment generated revenues of 245.6 million lei as of September 30, 2024, representing 80% of the total revenue. Although this segment saw a moderate decrease of 6% due to the challenging context of 2024, the company is confident that investments in cybersecurity and the integration of AI into its solutions will yield visible results in the near future.
Revenue from the second business segment, "Software Products," grew by 14% compared to the same period last year, reaching 57.5 million lei as of September 30, 2024. This segment accounted for 19% of the total revenue. Growth in this segment highlights the importance of AROBS’s diversified business model with three business lines. The software products segment helps offset challenges in the services area, thus ensuring financial and operational stability.
The Integrated Systems segment, where AROBS recorded revenues of 3.1 million lei, remains impacted by the delay of essential projects, including those financed through the PNRR (National Recovery and Resilience Program), which is one of the main reasons for the decrease in total revenue this year. Although AROBS’s management initially expected these projects to be awarded in Q4 2024, currently, the company anticipates the projects be signed at the beginning of next year.
