AROBS closes 2023 with a 43% increase in turnover, reaching 428 million lei

Cluj-Napoca, February 28, 2024 – AROBS Transilvania Software (BVB: AROBS), the largest technology company listed on the Bucharest Stock Exchange, posts a consolidated turnover of 428 million lei in 2023, a 43% increase compared to 2022, normalized EBITDA of 93 million lei, a 22% appreciation and a normalized net profit of 52 million lei, down 3% compared to 2022, amid the integration process of the companies acquired in the last two and a half years in the group.

“2023 was a year marked by a turbulent market in the technology area, this was seen in most of the IT companies listed both internationally and locally. It was a year of massive optimizations in IT with pressure on companies’ profitability indicators. In this context, we at AROBS have continued to grow despite these adversities. It was a year in which we worked intensively on effectively integrating the companies we brought under the AROBS umbrella as of the end of 2021. Transformation and integration are complex and lasting processes, the absolute priority being the functionality of synergies between the various entities and the capitalization based on the strengths of each company to improve the offer of services and software products. The integration process is an operational alignment and a shared culture that focuses on innovation, service and product excellence, and open communication. Such a process may temporarily impact the financial results, but, in the long term, this approach is vital for our strategy to build a solid foundation for sustainable development,” stated Voicu Oprean, founder and CEO of AROBS.

Regarding the 2023 turnover at the consolidated level, software services registered a 44% increase compared to 2022, contributing 81% to turnover, 345 million lei. The products segment software registered a 20% increase due to attracting new clients, contributing 16% to the turnover, 71 million lei. Also, the third business line, the integrated systems segment, contributed 3% to the turnover, generating revenues of 12 million lei. This business segment focuses on implementing hardware and software services for the public sector.

“The performance recorded in 2023 at the turnover level is the direct result of our expansion and diversification strategy and the continuous investments in technology and the professional development of our colleagues within AROBS. Despite the challenges of integrating acquired companies, we have been able to capitalize on growth opportunities in a challenging market environment. The financial indicators, although influenced by the integration process, reflect prudent management of resources. In 2024, one of the main concerns of our management team remains the continuation of the integration process and the optimization of operations at the level of the companies in the group”, stated Bogdan Ciungradi, CFO of AROBS.

Since the end of 2021, when the Bucharest Stock Exchange listing occurred, AROBS has organically implemented an accelerated development strategy through greenfield investments and M&A transactions. By the end of 2023, AROBS has completed nine M&A transactions, bringing together companies operating in the same industry and adding value by consolidating and expanding AROBS’ areas of expertise and geographic footprint.

In addition, on February 27, 2024, AROBS announced the signing of the tenth transaction through the complete takeover of the Infobest group, specialized in the development of software solutions for automotive, telecommunications, and manufacturing, with offices in Timisoara and Leverkusen, Germany. With this acquisition, AROBS aims to consolidate the group’s position in Germany and the DACH region.

Regarding AROBS’ activity on the capital market, in August 2023, the company’s shares were included by Morgan Stanley Capital International (MSCI) in the MSCI Frontier Markets Small Cap and MSCI Romania Small Cap indices. Also, as of March 18, 2024, AROBS shares will be included in the FTSE Global Micro Cap index.

AROBS Transilvania Software is listed on the Main Market of the Bucharest Stock Exchange, Premium category, as of September 25, 2023. The 2023 consolidated preliminary financial results published by the company are unaudited.