Ailleron Group's record revenue reached 250 million PLN in H1 2024

• In the first half of 2024, Ailleron Group recorded sales revenue of PLN 249.5 million, nearly 10% higher than in the same period last year, including the results of the U.S. company Prosoft LLC (number8) starting from the second quarter of 2024.
• Adjusted EBITDA amounted to nearly PLN 41 million, a year-on-year increase of about 17% while operating profit reached just under PLN 33.2 million. Net profit, excluding one-off events, was around PLN 27.7 million (a 37% year-on-year increase), including net profit for the parent company’s shareholders of approximately PLN 10.7 million (up 12% year-on-year).
• Exports accounted for 77% of the revenue during the period. Foreign sales grew to nearly PLN 191.8 million in the first half of 2024, achieving a growth rate of over 13%.
• The Technology Services segment, operating as part of the Software Mind Group, generated sales of PLN 215.8 million, marking a nearly 11% year-on-year increase. The results were significantly boosted by the consolidation of number8 (from Q2 2024). Operating profit amounted to just over PLN 33.4 million, resulting in an operating margin of around 15%.
• The FinTech segment generated revenue of over PLN 32.5 million (an increase of 9%). However, the segment posted a negative operating result for the entire first half, although there was significant improvement in Q2 2024. An agreement with Pekao SA and the seasonal nature of tenders impacted the outcomes.

In the first half of 2024, Ailleron recorded consolidated sales revenue of PLN 249.5 million, nearly 10% higher than the same period in 2023 (representing a value increase of almost PLN 23.3 million). In the second quarter alone, the Group generated PLN 142.8 million in sales revenue (+PLN 27.1 million year-on-year), marking a 23% year-on-year growth. This was also the highest quarterly revenue in Ailleron Group's history. The strong revenue performance was achieved despite the negative impact of the strengthening Polish zloty against foreign currencies, particularly USD and EUR. Comparing the average exchange rates used for sales conversion in the first half of 2024, the USD/PLN rate dropped by 6.4%, while the EUR/PLN rate fell by 6.5%. Despite this, when looking at sales expressed in foreign currencies, the Group maintained or even increased its sales levels year-on-year.

We have strong foundations in technology and great potential for global expansion. The results are already visible in our performance for the first half of 2024, where, following the agreement with Bank Pekao SA and the acquisition of a new entity in the U.S. market (number8), we are able to generate significantly higher operating results and maintain a stable EBITDA margin. We are experiencing a strengthening of the Polish zloty against major export currencies, such as USD and EUR. Despite a challenging market, we are managing to grow organically and significantly optimize our cost base. Ailleron Group's business situation is very good, and its financial and liquidity position remains stable.

Tomasz Król

CFO / Group CFO

Ailleron SA

After the first six months of this year, Ailleron reported an EBITDA (including one-off events) of nearly PLN 38 million, which is 30% higher than the result achieved in the previous year. Operating profit amounted to nearly PLN 30.2 million, and net profit to approximately PLN 24.7 million (including net profit for the parent company's shareholders of around PLN 9.4 million). This means that the company achieved an operating profit over 39% higher than in the same period last year. In the case of net profit, this represents an increase of over 61%.

In the FinTech segment, the revenue generated during the period was higher than in the same period of 2023, amounting to over PLN 32.5 million (a 9% increase). Historically, FinTech exhibits seasonality, with the first quarters typically being the "weakest" in annual results. The operating result for this segment was negative for the entire first half, amounting to nearly PLN 3.2 million, although there was significant improvement in Q2 2024. On the one hand, the results reflect the impact of the agreement signed with Pekao SA, while on the other hand, historical seasonality and the postponement of tender decisions to the second half of the year affected the results achieved during the analyzed period.

The results of the FinTech segment show that the demand for modern services that transform financial business is immense. We create solutions for main banks in Poland and leasing companies. The accelerating trend is the significant digitalization of every aspect of our lives. The overwhelming interest in our recent Ailleron Innovation Forum 2024 shows that business transformation is a key concern for representatives of nearly every industry. The number of participants doubled compared to 2023, with nearly 200 people attending the event. We are optimistic about the future; the technological breakthrough is inevitable, and the revolution driven by AI will likely be evident in the coming years. We are part of this and are among the pioneers.

Piotr Piątosa

Vice-President / COO

Ailleron SA

Software Mind and the Technology Services sector generated sales of approximately PLN 215.8 million (an increase of nearly 11%). However, it's important to note that this includes the effect of the consolidation of number8 (starting from Q2 2024), but also the unfavorable impact of exchange rates, which results in lower year-on-year revenue when denominated in Polish zloty, ultimately affecting the overall outcomes. As a result, operating profit amounted to just over PLN 33.4 million, meaning that Technology Services achieved an operating margin of around 15%.

Global digital transformation is accelerating, and technologies like artificial intelligence (AI), automation, and cloud solutions are becoming key elements of many companies' business strategies. We see how these trends drive growth and innovation across various sectors of the economy, which directly translates into the increasing demand for our services. With the acquisition of Prosoft LLC and the strengthening of our presence in the U.S. market, Software Mind is in an excellent position to deliver advanced IT solutions to both startups and industry leaders. Our Group, with a strong focus on AI, has enormous growth potential, both in domestic and international markets.

Grzegorz Młynarczyk

President of Software Mind and Vice President of the Management Board at Ailleron SA.

Export sales increased during the first half of 2024 to nearly PLN 191.8 million, achieving a growth rate of over 13%. In the same period of 2023, export sales amounted to nearly PLN 169.5 million, indicating a nominal increase of PLN 22.3 million. After six months of this year, the U.S. market has surpassed the European Union market, becoming the Group's largest foreign market in terms of generated revenue. In particular, the steady increase in exports is a result of the growing share of the Technology Services business, which is nearly 100% export-oriented.

Ailleron SA is a capital group listed on the Warsaw Stock Exchange. Its subsidiary Software Mind provides software development services to innovative companies from Western Europe and the United States (including from Silicon Valley) and – under the Amplitiv brand – to the telecommunications industry. Software Mind is developed jointly with Enterprise Investors – one of the largest private equity funds in Central and Eastern Europe. Ailleron focuses on comprehensive software development services for banks, leasing companies, FinTech and other organizations, mainly in the financial industry in Europe and Southeast Asia. It creates innovative IT solutions based on cloud technology and artificial intelligence. Ailleron’s clients include banks such as CitiBank, ING, Santander, BNP Paribas, Standard Chartered and Credit Agricole. With a global reach spanning over 40 countries, the Ailleron Group serves more than 200 clients and employs a strong team of over 1,800 specialists. International markets contribute to a remarkable 75% of the Group's revenue, demonstrating its truly global impact.