Comarch has an order book 7% higher y/y, and is working on large international contracts

Comarch’s order portfolio for 2023 is currently 7% higher than a year ago at the same time, Vice President Konrad Tarański informed. The group is working on large contracts around the world, especially in the telco area.

“The order book for 2023 is now 7% higher than a year ago at the same time. This dynamics is higher than in the first quarter, but lower than the one or two years ago. We are working on new contracts, especially in the telecommunications industry,” said Tarański during the videoconference.

He emphasized that the Comarch Group operates all over the world and talks about large contracts with large clients in various countries and hopes that this will soon result in the acquisition of new contracts, especially in the telecommunications area.

The Vice-President of Comarch assessed that currently the trends observed in the results for the first three months of the year dominate in individual backlog segments.

“In the telecommunications segment, I don’t think we should expect any dynamic rebound in the near future. Q2 should be slightly better a year earlier, which is due to certain events that took place in Q2 2022, when one of the projects ended. However, for the whole year, this dynamics is small in the black,” added Tarański.

He also indicated that the group expects greater growth in other business areas, such as ERP.

“There is a lot of work to be done in connection with the demand reported by our customers, but also changes that will function in our country, such as electronic invoices. This should strengthen the demand for solutions in the ERP sector, but also in the commercial and service sector. Also finance and banking, based on the portfolio of contracts acquired in previous years. Growth prospects here are good. Certainly, it looks less positive in the case of the public sector. In the first quarter, there was a negative dynamics and we do not expect any growth in the following quarters either,” said the vice-president.

Comarch has been reducing employment in recent periods and Tarański of the company estimated that it will not grow.

“Probably in Q2 there will be another decline, because here we have no business reasons to increase. There will be some natural rotation. In the third quarter, a slight increase should be expected due to the traditional internship program. However, this increase should be noticeably smaller than in previous years,” pointed out the vice-president.

He upheld Comarch’s dividend policy, but with regard to the amount of payments, he stressed that one should wait for the decisions of the company’s authorities. Regarding the plan to recapitalize the Cracovia club and buy shares from the city, he indicated that Comarch maintains interest in this type of project, and the further plan depends on the dynamics of activities on the part of the city of Krakow.

At the same time, Tarański maintained the market launch of the Pomocpl platform at the end of the first half of the year and the commissioning of a data center in the USA in May. The company points out that the facility will improve the diversification of Comarch’s infrastructure and will allow the use of lower energy prices than in Europe.

Comarch specializes in the design, implementation and integration of advanced IT systems, programming tools, tools and network infrastructures. The company has been listed on the Warsaw Stock Exchange since 1999. In 2022, it had PLN 1.86 billion in consolidated revenue.

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