A Record Quarter for R22

Warsaw-listed technology group R22 continues its dynamic business growth, improving both revenue and profit. In Q1 2020, the Group achieved PLN 49.5 million in revenue and PLN 13.9 million in normalised EBITDA – representing year-on-year increases of 33% and 30% respectively. Net profit for the period amounted to PLN 5.3 million.

The start of 2020 brought significant developments in the hosting segment. In January, the company exercised its option to acquire the remaining minority stake in the segment, bringing R22’s ownership to 100%. Then, in early April – just after the close of Q1 – the Group launched the new cyber_Folks hosting brand.

– cyber_Folks is a brand created by people, for people. At its heart is the human being – both the customer who uses our services and our team, which acts as their friend and expert, delivering the best possible support. Launching this new brand is a milestone in the unification of our hosting brands across all markets. It is also part of a comprehensive overhaul of how we communicate hosting services, domain sales and support for companies’ online presence and digital sales. – says Jakub Dwernicki, CEO of R22.

The early months of 2020 also coincided with the spread of the SARS-CoV-2 coronavirus epidemic, which had a significant impact on the social and economic landscape. It also had an effect on the R22 Group’s operations.

– We recently recorded heightened demand for our services. In particular, we saw a record number of SMS and email messages sent at the start of March. In the weeks that followed, volumes remained high, driven primarily by greater consumer activity in the online shopping space. I believe that in the medium and long term, the epidemic and the associated lockdown will translate into increased demand for business process automation and digitalisation solutions. – comments Jakub Dwernicki.

In the omnichannel communication segment, the Group’s Q1 2020 revenue grew 47% year-on-year to PLN 23.0 million, with EBITDA rising 62% year-on-year to PLN 5.6 million. In the hosting segment, EBITDA reached PLN 7.2 million (up 16% year-on-year) on revenue of PLN 23.1 million (up 27% year-on-year).

– With each successive period, we are achieving stronger financial results. Importantly, this is healthy growth that translates into cash generation. We stand by our commitment to share profits with our shareholders. – adds Jakub Dwernicki.

Over the nine months of the 2019/2020 financial year, R22 generated PLN 141.7 million in consolidated revenue, PLN 40.5 million in normalised EBITDA and PLN 15.7 million in net profit. Net profit attributable to shareholders of the parent company amounted to PLN 11.0 million.