More thanPLN 24 million in net profit was earned by the technology cyber_Folks Group inthe first quarter of this year. This is an increase of more than 70 percentcompared to the result obtained in the same period last year. From January toMarch, consolidated net revenues amounted to more than PLN 144 million (30percent year-on-year increase), and adjusted EBITDA was almost PLN 40 million(26 percent year-on-year increase). The very good results are reflected in theGroup's cash position, which enables record profit distribution to shareholdersand opens up the potential for acquisitions worth up to PLN 1 billion.
- One ofour main goals since our IPO has been dynamic business development and profitgeneration. We are following the path of building a strong and internationallyrecognized brand. Today, our products are the first choice for many customersboth in Poland and in foreign markets. We are aware that we are running amarathon, not a sprint, we are implementing our strategy consistently - step bystep. The most important thing for us is our customers, we are client-centric,we are obsessed with the quality of service of the products we provide to ourusers, which, as you can see from our financial results, is definitely payingoff. - says Jakub Dwernicki, CEO of cyber_Folks.
In the first quarterof this year, the Group's consolidated revenues amounted to PLN 144.1 million,compared to PLN 110.5 million a year earlier (a 30 percent increase).Meanwhile, adjusted EBITDA rose to PLN 39.7 million from PLN 31.6 million. TheGroup made a net profit of PLN 24.2 million, 70 percent higher than a year ago.In Q1, the Group generated PLN 42.4 million in cash flow from operations, andat the end of March the cash position stood at PLN 86.5 million.
The cyber_Folksservice ecosystem continues to grow. The company's latest product _Now, aninnovative website builder powered by artificial intelligence technology, has beenawarded the Masters of AI Experience. At Masters&Robots, one of the mostinfluential technology conferences in the CEE region, an internationalcommittee recognized the capabilities of the innovative tool, which, in just 90seconds, allows you to create a fully functional website. The company estimatesthat by 2034, 60 percent of websites will be created by artificialintelligence.
- Ourproduct was developed in Poland, but our ambitions extend far beyond ourcountry's borders. We estimate that after the sale of Profitroom, theacquisition potential of the cyber_Folks group at the end of 2024 will be aboutPLN 1 billion. Of course, this does not mean that we will definitely spend thatmuch, but for today we have such possibilities. On an ongoing basis, we arelooking for investment targets that can significantly strengthen our business.Our strategy is focused on products. We are very fortunate to be operating in amarket that gives us unlimited opportunities for further growth. - says Jakub Dwernicki,CEO of cyber_Folks.
In mid-April this year, cyber_Folks signed a preliminary agreement tosell all of its shares (30.34 percent) in Profitroom, a provider of SaaSapplications for hotels. The amount ofthe transaction will be about PLN 97.5 million, which means about 3 timesreturn on invested capital. Managementexpects nearly PLN 85 million in net proceeds after tax.
- The saleof Profitroom has a significant impact on the Group's debt level, which has nowapproached 1.2 net debt to EBITDA. Taking into account the proceeds from this transaction, net debt willfall firmly below 1, and could drop to zero by the end of the year. Theadditional cash inflow allows us to think about pursuing more ambitiousacquisition projects. - says Robert Stasik,vice president of cyber_Folks.
The sale ofProfitroom will not affect this year's dividend, but - in line withcyber_Folks' long-term dividend policy - will enable it to continue to increasein future years. The board expects to pay a dividend of PLN 21.3 million (PLN1.50 per share), an increase of more than 60 percent compared to last year'sdividend. The remainder of the net profit for 2023, according to the Board'sproposal, will be used to buy back treasury shares worth PLN 6.8 million. As aresult, the total distribution to shareholders could be twice as high as a yearearlier and amount to PLN 28 million.
Management signals that the Company has a good chanceof being promoted to mWIG40. The final composition of the indexes will be knownon 24 May this year.
- The market trusts us, as evidenced by our 2nd placein the Stock Exchange Company of the Year ranking. We are not slowing down, wewant to grow on the technological global transformation. We reckon that thequestion of promotion to the ranks of the largest companies listed on the WSEis a matter of time, we are improving our parameters, both capitalization andshare turnover, from month to month. - Robert Stasik adds.
Since the IPO, theGroup's revenue has increased 5-fold and capitalization has increased more than7-fold, exceeding PLN 1.8 billion. The Management Board's goal is to continuethe growth realized since the IPO, and consequently to become one of the few Polishunicorns.
cyber_Folks' strategyis to continue the dynamic development of its own products through R&Dprocesses. Noteworthy among the Company's proprietary projects are _Stores - anonline store creator, which is gradually gaining popularity on the Polishmarket (about 400 new users per quarter), as well as the aforementioned _Now.