In H1 2022, Span recorded an increase in revenue of 4% YoY, EBITDA after one-off items increase of 113% YoY, and a net profit of HRK 24.5m, an increase of 230% YoY.
The operating revenue of Span Group amounted to HRK 406.9m in H1 2022, representing an increase of 4% YoY. The revenue increase in the IT service segments with high added value compensated for the drop in revenues in the Software Asset Management and Licensing segment that comes from the decline of revenues in the Ukrainian market. This is due to the fact that from 1 April 2022 to 31 December 2022, Microsoft has enabled all Span Group’s customers in Ukraine to use its products free of charge.
The best gainer in relative terms was “Infrastructure Services, Cloud & Cyber Security” which had a 67% growth. On the flip side, operating expenses have decreased slightly by 0.3% YoY amounting to HRK 375m. The primary reason for the slight decline is the lower expenses for goods and services which are the main source of expenses, whereas the personnel expenses increased, including the other business expenses. The goods and services expenses dropped because of the lower expenses in the Ukrainian market which also mitigated the increase in direct expenses caused by the growth of revenues of the rest of the Span Group.
A higher number of employees and one-time expenses from the allocation of shares to employees of Ekobit resulted in higher personnel costs, while the other expenses are a direct result of a higher volume of operations and employees.
Even though total revenues have increased by 4%, the Group’s EBITDA before one-off items in the first half of the year increased by 101% and amounted to HRK 35.7m, and after one-off items, it increased by 113% and amounted to HRK 32.7m. The one-off items were primarily expenses from the allocation of shares to employees of Ekobit and operating expenses from the acquisition of Ekobit itself, mainly costs of consultants. Lastly, the net profit before one-off items increased by 157% to HRK 25.2m, and by 230% after one-off items to HRK 24.5m.
Span key financials (H1 2022 vs. H1 2021, HRKm)
Overview of the business operations in Ukraine
Revenues of the TOV Span in Ukraine have decreased significantly in the first half of 2022 due to the already mentioned change where Microsoft made their services and products for the Ukrainian market essentially free of charge. However, operating expenses were also reduced due to a decrease in business activities. Revenues of TOV Span account for 6% of the Group’s revenues. Standalone TOV Span’s EBITDA amounts to HRK -909k which is an increase of EBITDA of 45% YoY, up from HRK -1.66m in H1 2021. To read the full report in detail, click here.
