R22 Group Reports Nearly 50% Net Profit Growth in Q2 2021

The R22 Group delivered record financial results in Q2, posting a significant improvement in profitability. This was made possible primarily by the Group’s strong exposure to the accelerating trend of economic digitalisation and automation, and in particular to the e-commerce sector. In Q2 2021, the Poznań-based technology group generated PLN 68.3 million in revenue – a 29% year-on-year increase. Adjusted EBITDA grew 30% to PLN 18.6 million. Net profit attributable to shareholders of the parent company grew even faster, rising 47% year-on-year to PLN 8.4 million.

– Looking at the first half of 2021, there are several highlights worth noting. Above all, the successful IPO of Vercom S.A. and its debut on the Warsaw Stock Exchange, the strong results achieved in the cyber_Folks segment – 40% EBITDA growth in both H1 and Q2 – as well as the robust revenue momentum and sales development at Profitroom – says Jakub Dwernicki, CEO of R22. – Furthermore, after the close of the reporting period, we announced further investments in Freshmail, PushPushGo and SellIntegro. – he adds.

In the cyber_Folks segment, the Group generated PLN 24.6 million in revenue – 10% more than a year earlier. EBITDA reached PLN 10.2 million, up 42% year-on-year. The faster profit growth in the segment reflects, among other things, the reshaping of the customer base. – With a similar total number of customers year-on-year, we have significantly more active users making full use of our offer, with higher growth potential going forward – particularly in the e-commerce sector. – emphasises Jakub Dwernicki. The cyber_Folks Group now serves over 40,000 online stores.

In the CPaaS segment, the Group generated PLN 39.7 million in revenue – as much as 45% more than a year earlier. EBITDA reached PLN 8.8 million, up 51% year-on-year. The CPaaS segment is operated by Vercom, which made its debut on the Warsaw Stock Exchange on 8 May. The IPO raised approximately PLN 170 million, which the company will use for acquisitions. Combined with potential bank financing, Vercom can allocate up to PLN 250 million to M&A. After the close of H1, two initial investments were announced: in Freshmail, the email marketing market leader, and in PushPushGo, a company specialising in Web Push notifications.

– Profitroom also deserves a special mention. The company has embarked on international organic growth and is in discussions on potential acquisitions, focusing in particular on DACH, Spain, LATAM, the Nordic countries, the United Kingdom and English-speaking markets worldwide – notes the CEO of R22. In Q2 alone, Profitroom generated PLN 9.0 million in consolidated revenue (up 64% year-on-year), PLN 4.2 million in adjusted EBITDA (up 84% year-on-year) and PLN 3.2 million in adjusted net profit (up 118% year-on-year) – this figure excludes the write-off of the PFR grant in the previous quarter.

– We are fully committed to driving further Group growth, built on three main pillars: the cyber_Folks Group, the Vercom Group and the SaaS segment. We support businesses in their digitalisation journey and transition to e-commerce. We are attracting more and more customers operating in this space, which is especially valuable to us as we can offer them a wide range of add-on services and support them in multiple aspects of running their business. – concludes Dwernicki.