Fabrity Holding Group (formerly K2 Holding) maintains a double-digit growth rate in operating income thanks to the rapid development of its software design segment. The process of reviewing strategic options for the marketing segment is continuing and should be completed by the end of this year.
Fabrity Holding Group’s preliminary estimated financial figures for January–June 2023 excluding the marketing segment (subsidiaries Agencja K2 and K2 Precise classified as assets held for sale) show a 26% YOY increase in sales revenue to PLN 31.5 million and a 28% YOY increase in operating income to PLN 28.4 million. EBITDA, on the other hand, decreased by PLN 0.5 million to PLN 3.7 million, and operating profit by PLN 0.4 million to PLN 2.5 million, mainly due to the unfavorable change in the exchange rate and the temporary extension of the execution of some projects.
“One of the things that affected us in the second quarter was the strengthening of the zloty. However, we expect a strong improvement in sales and profit ratios in the second half of the year. We think the third quarter at our subsidiary, Fabrity, will be excellent. This is a very positive signal, especially in the situation of a market slowdown in the area of software-development projects,” says Paweł Wujec, CEO of Fabrity Holding S.A.
Fabrity Holding Group’s preliminary estimated financial results for the first half of 2023, including the marketing segment, indicate a level of sales revenue close to PLN 56 million, a 16% increase in operating income (to PLN 38.1 million) and a decrease in EBITDA to PLN 4.8 million and operating profit to PLN 3.6 million. The decline in the marketing segment’s overall revenue is a direct result of the change in revenue structure: the marketing segment shows an increasing share of revenue from the sale of professional digital services (SEO, social media, MarTech) with a decrease in the importance of media campaign brokerage and external productions.
Fabrity holding Group is continuing its work in reviewing the strategic options of the marketing segment companies with an expected completion date of the end of 2023, and as a result, the performance of the Issuer’s subsidiaries, K2 Precise and Agencja K2, will be presented in the consolidated statements as the result of the assets group held for sale. The net result of PerfectBot, on the other hand, will be recognized in the consolidated financial statements using the equity method, as a result of taking into account the Fabrity Holding Group’s 50% share in the capital of this company.
The final financial results with segmental decomposition and detailed comments and statements will be presented in Fabrity Holding Group’s half-yearly consolidated interim report, scheduled for publication on 31 August 2023.