In the first 9m of 2020, M+ Group recorded an increase in sales of 108%, an increase in EBITDA of 215% and an increase in net profit of 103%.

On Friday M+ Group, the largest providers of business process outsourcing services (BPO) in the region, published their 9M 2020 results. According to the report, the Group operating revenue doubled (+112%) to HRK 515.2m, which can mostly be attributed to the acquisition of the company CMC in the amount of HRK 214m. The management of the company added that the lockdown has also augmented the need for business processes and technology sector which was evidenced on the top line.  Therefore, income from contact center services at the Group level continued to grow in the Q3 as well.

On the operating expenses side, one can notice an increase of 113% (or HRK 256m) to HRK 483.7m. Such an increase primarily came on the back of higher employee costs (HRK +160.6m) as the number of employees went from 2,700+ in 9M 2019 to current 7,500+. The mentioned increase could predominantly be attributed to the above-mentioned acquisition of CMC.

As a result of all of the above, EBITDA increased by HRK 58.82m (or +215% YoY) to HRK 86.22m. Of that roughly HRK 40m came on the back of the CMC acquisition, while HRK 19m can be related to an increase in business efficiency. Therefore, if we were to exclude the effect of the acquisition, EBITDA would have grown roughly 69% YoY. The reported EBITDA also meant an improvement in EBITDA margin by 5.5 p.p. to 16.7%. Meanwhile, operating profit is up by 96% to HRK 31.5m.

Going further down the P&L, the Group recorded somewhat of a lower net financial loss which amounted to HRK -1.3m (compared to HRK -1.5m in 9M 2019).

In 9m of 2020, M+ Group reported a increase in net profit of 103% to HRK 25.65m Such a result led to somewhat of a lower profit margin of 5% (-0.2 p.p. YoY).