From the top line to EBIT, Asseco’s 4Q12 results brought no surprises: operating results were in line with expectations on all of the main numbers. The top line increased 7% y/y in the period, mostly due to nonorganic factors.
EBIT came in at a weak PLN 154.4m in 4Q12, fully in line with expectations. This was the weakest quarter in 2012 in terms of EBIT, despite rising from an incomparably low 4Q11, which lacked the full consolidation of Sapiens and suffered from an extraordinary D&A charge at the Israeli subsidiary. The parent company booked EBIT of PLN 58.1m in 4Q12: despite being slightly above our forecast, this was still down 11% y/y from the depressed 4Q11, i.e. the result was simply weak. Formula booked disappointing EBIT of PLN 35.6m in 4Q12, the lowest quarterly EBIT in all of 2012.
Net income once again came as a positive surprise, mostly thanks to lower-than-expected minority incomes. Overall, we see Asseco’s 4Q12 numbers as weak. EBIT in the period reflected the firm’s operational performance and was fully in line with our expectation and the consensus for a weak 4Q12. However, the market might focus on the stronger-than-expected bottom line thus we could see a positive market reaction today. We look forward to hearing the CEO’s elaboration on the planned expansion into Russia and some other exotic directions.