Span Publishes Q1 2022 Results

In Q1 2022, Span recorded an increase in revenue of 38% YoY, EBITDA after one-off items increase of 68% YoY, and a net profit of HRK 17.2m, an increase of 135% YoY.

In Q1 2022, the operating revenue of Span Group amounted to HRK 185.1m, an increase of 38.2% YoY. The revenue increase stems from the growth in all the segments of the Company, with the largest percentage growth achieved by Infrastructure Services, Cloud & Cyber Security Solutions, which grew by 77% YoY.

Meanwhile, operating expenses also experienced an increase, growing by 34.3% YoY and amounted to HRK 169.7m. The increase was a result of higher expenses for goods and services, higher expenses for personnel as well as higher other operating expenses. Breaking this down further, goods and services expense growth was correlated directly to revenue growth. Personnel expenses increased by 40%, as a result of the higher number of employees and one-off expenses arising from the allocation of shares to employees of Ekobit. Finally, other operating expenses grew under the influence of the higher volume of operations and higher number of employees. Ekobit transaction is valued at HRK 37.4m and part of the purchase price that depends on the 2022 operating results of Ekobit is subject to adjustment. the Company paid part of this purchase price in treasury shares (17,013) by allocating them to employees as a purpose of fulfilling a Share Allocation Plan.

One-off items had strong influence on the EBITDA development. EBITDA before one-off items grew by 88% and amounted to HRK 23.1m. The main one-off items are the aforementioned expenses from the allocation of shares to employees of Ekobit, something that is defined in the purchase and sale contract, as well as the higher operating expenses arising from the acquisition of Ekobit, mainly related to the costs of consultants. If we were to take these one-off items out, EBITDA after one-off items increased by 68% (or HRK 8.2m) to HRK 20.1m.

One-off net financial results related to the acquisition of Ekobit also had an influence on the net profit. Higher financial income (+82% YoY), amounting to HRK 3.1m, grew faster than financial expenses (+35.6% YoY), amounting to HRK 1.6m. In total, the net financial result amounted to HRK 1.5m, an increase of 182% YoY, mainly as a result of the difference in the price of Ekobit shares for which Span bought them and those by which Ekobit acquired them in 2017. In total, net income after one-offs increased by 135% YoY and amounted to HRK 17.2m.

Span Key Financials (Q1 2021 vs. Q1 2022, HRKm)

*after one-off items

Overview of the business operations in Ukraine

Span also provided an overview of its business operation in Ukraine, in the form of information on its TOV Span Ukraine subsidiary. Revenues of TOV Span account for 11% of the consolidated revenue of the Group in Q1 2022. Even though there was an increase in revenue in 2022, the share of that revenue in the total consolidated revenue decreased due to the fact that it grew slower than other regions. EBITDA is negative, but its position improved by 14% and decreased to HRK -918k (Q1 2021: HRK -1.07m). Finally, net loss amounted to HRK 1.4m, an increase of 32% YoY. Furthermore, Span states that their operations in the war-ravaged areas of Ukraine have not stopped and they continue providing support for their users in the country.

To read the full report in detail, click here.

InterCapital
Published
Category : Flash News

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