The Board of Wind Mobile has summed up the first quarter of 2015 as a success. The Group recorded a 5-fold increase in revenues compared YOY (year over year), amounting to nearly 13 million PLN. The EBITDA and net profit have been worked out at 1.9 million PLN and 1.1 million PLN, which work out to an increase of 104% and 89%, respectively. As part of the operational activity, the period was marked by important sales project contracts – signing a contract with German Commerzbank and an increase in sales of iLumio to global hotel networks – all of this on the eve of the public offering and the move to the main floor of the Warsaw Stock Exchange.
The Wind Mobile Group has generated sales revenue in the amount of 13 million PLN, compared to 2.66 million PLN in the first quarter of last year. The profit from operations amounted to 1.3 million PLN (a 101% increase), the EBITDA was 1.9 million PLN (an increase of 104%), and the net profit was 1.1 million PLN (an increase of 89%).
The high growth in revenues of our group is mainly the product of the consolidation of the results of Wind Mobile with its subsidiary, Software Mind. Nevertheless, I believe that this shows our potential for further growth in earnings in the coming quarters, and even years, with effective use of the synergy resulting from the merger of the two companies – said Rafał Styczeń, Chairman of the Board of Wind Mobile SA.
In relation to the end of 2014, the value of the net working capital has also increased. Breaking another record in the history of the Group, the 26.3 million PLN level allows for a promising assessment of both the development potential of the company, as well as securing collateral bond debt service.
PRODUCT SALES INCREASE
In the first quarter of the year, the Group signed several important agreements in the two main directions of development, namely foreign expansion and the sale of its own products. Both the development and dynamic sales to increasingly demanding clients, reflect the strategy of successively increasing the share of proprietary products in the company’s sales which was adopted by the Board.
LiveBank sales in European markets resulted in the first contracts, including, in particular, the prestigious implementation for Commerzbank on the German market. Commerzbank AG is the second largest bank in Germany. The second flagship product of the company – iLumio – quickly advanced to a leadership position in the Polish market in the field of innovative solutions for the hospitality industry and, in the first quarter of this year, successfully began sales in foreign markets, as well as new segments of the market. After the contract phase for non-chain facilities, the product is successfully being sold to global hotel chains, such as Hilton, Best Western and, most recently, Accor. ILumio expands its development potential through entering new market sectors, including the hospital market, as evidenced by the implementation of the platform in the New Voivodeship Hospital in Wrocław.
I can without hesitation call the last period a breakthrough in the development of our sales offer. The scale and prestige of implementation, as well as global trends in banking, position our LiveBank product among the most innovative and desirable solutions of the finance sector. Just as the implementation of our platform for mBank opened the way to other banks in Poland, we believe that the pioneering implementation for a leading bank in Germany will allow us to conclude further contracts abroad. We are currently conducting advanced talks with several potential clients, and their progress is very promising – says Rafał Styczeń, Chairman of the Board of Wind Mobile SA.
Currently, the Group is conducting a number of pilot implementations and analytical projects for new clients, and the portfolio of interested clients implies great potential in subsequent periods. The company has also started building a network of partners selling the product to distant markets. Partnership agreements have been signed for the Israeli, Scandinavian and United Arab Emirate markets.
MAIN FLOOR OF THE WSE
In connection with the significant growth potential of the organization, limited access to capital and a relatively low level of liquidity of the stock market in relation to the capitalization of the Group, the Board began the process of transferring the listings to the WSE regulated market.
On December 15, 2014, the parent company submitted the registration portion of the prospectus to the Polish Financial Supervision Authority. On May 6 this year, Wind Mobile shareholders decided to issue up to 750 thousand series K shares without subscription rights, as well as beginning the process of transferring the company listings from NewConnect to the main WSE market. On May 11, the Group submitted the bid portion of the prospectus to the PFSA.
The Group intends to allocate funds acquired through public issue for the development of proprietary products and expansion into foreign markets.
The plan of the Board provides for a public offering and listing transfer as early as the second quarter of this year.