Increase in sales of services and profits of Infovide-Matrix in first half of 2009

(August 27, 2009)

The Capital Group Infovide-Matrix, a leading provider of consultancy services and innovative IT solutions, improved its financial results in the 1st half of 2009 The operating profit increased by 13% up to PLN 7.2 million from PLN 6.4* million in the 1st half of 2008. The net profit increased by 23% and amounted to PLN 5.7 million compared to PLN 4.6* million in the same period of the previous year. At the same time, Infovide-Matrix generated the revenues of PLN 110.4 million, which means a 15% increase in comparison to the 1st half of the previous year. The Company also maintains a high level of revenues from services constituting nearly 80% of the total sales revenues. The good results generated in spite of turbulence on the market are first of all the result of an efficient management system and the service portfolio that is adapted to the changing market conditions. 

“The first half of 2009 was a very demanding period. A slow down was observed in many sectors of economy – as all the IT services providers we are also susceptible to price pressures from the clients. Our strategy of adaptation to market conditions consists in increasing effectiveness and focusing on those services that are of key importance for the customers. Owing to that, we can adapt to financial possibilities of the market while offering a real value. This way we increased the revenues from sales and observed an increase in profits. It is worth mentioning that, along with a consistent implementation of our strategy, we have implemented a series of programmes that effectively support business management and generate savings. Our good results are owed to these complex steps” – says Marek Kobiałka, the Management Board President of Infovide-Matrix SA.

The financial results of Infovide-Matrix in PLN thousand are presented in the following table: 

* result adjusted with the value of the option programme amounting to 1,914 thousand.

Backlog for 2009. Development of services in the public sector and offers for the energy sector

Backlog of contracts for 2009 is close to PLN 136 million (data for August 2009), and the highest share in contracts belongs to services for telecommunications, banking and public administration. 

Infovide-Matrix runs a series of significant advisory and implementation projects supporting transformation that is under way in institutions of public administration in order to considerably support the effectiveness of services provided by those institutions. Owing to its knowledge of the sector, Infovide-Matrix stands out on the market and expects more contracts to be signed with institutions of public administration.

Noticeable increases have also been noted in the energy and insurance sectors.

“We are happy with the level of contracts signed after the 1st half of the current year. In spite turbulence in economy, our orders portfolio is close to the level of contracts signed in the same period of the previous year, when the market situation was still very good. Good results have also been generated by our activities with the public administration and energy sector. In the second quarter of this year we signed, among other contracts, a framework agreement with the Ministry of Interior and Administration and agreements on the implementation of large projects for the Social Insurance Office (ZUS) and the Central Statistical Office (GUS). The projects run in the energy sector include but are not limited to large advisory projects for PGNiG (Polish Oil & Gas), Tauron, Enea, REW, and Vattenfall.” - Borys Stokalski, Vice-President of Infovide-Matrix SA Management Board, said.

Project run by Infovide-Matrix during the 1st half of 2009:

In the public administration sector, Infovide-Matrix run a series of significant advisory and implementation projects supporting transformation that is under way in institutions of public administration in order to considerably support the effectiveness of services provided by those institutions.

The key event for sales to that sector was an agreement signed between Infovide-Matrix and the Ministry of Interior and Administration on advisory services under projects run by the IT Projects Centre of that Ministry. The agreement, signed for 4 years, is to be implemented in cooperation with six other IT companies. Infovide-Matrix consultants will be responsible, among other tasks, for the support to the Ministry implementation teams in field of planning, project management and supervision of contractors. Under the reference agreement, Infovide-Matrix obtained an order for the provision of advisory services for the preparation of the ePUAP2 project. Another agreement was signed with the Ministry of Interior and Administration for the support in the supervision of the development and extention of the Cepik system. In the 1st quarter of 2009 as part of the Operating Programme „Innovative Economy”, a project consisting of the preparation of a feasibility study for the project “Location and IT Platform with Central Database” (PLI CBD) for the Office of Electronic Communications was also completed. Owing to the project completion, Infovide-Matrix will contribute to a quicker finalization of works related to 112 emergency number and consequently, to the increase in the safety of population of the entire country.

In the second quarter of 2009, agreements for important undertakings were signed. For the Social Insurance Office (ZUS), Infovide-Matrix will prepare documentation that is necessary for the creation of the Electronic Services Platform (PUE). The platform is to enable a 24-hour contact with ZUS by means of new communication channels including an internet portal, call centre and interactive customer service kiosks.

Under another agreement, Infovide-Matrix is the main consultant for the Central Statistical Office (GUS) during the implementation of the PSR 2010 and NSP 2011 projects aimed at carrying out the National Census of Agriculture 2010 and the National Census 2011, as well as trial censuses. Paper forms are not expected to be used for that purpose. Infovide-Matrix supports both the implementation of the PSR 2010 and NSP 2011 projects as well as coordination of the entire undertaking.

In the telecommunications sector, Infovide-Matrix S.A. continued the development of their services portfolio intended for these sectors and project works for such clients as Polkomtel SA, TP SA Group, PTC, P4, Polsat Cyfrowy and other telecommunications operators. The implemented projects included but were not limited to the development of a data warehouse, billing system, integration platforms, CRM system and the implementation of the corporate data model. The Company intensively developed its competences and extended the scope of services provided in the field of key sector competences, such as billing systems or order management.

In the banking and insurance sector, the Group continued projects for key banks and financial institutions. Implementation projects were carried out aiming at extending access to modern banking services via internet and mobile channels, including but not limited to development works related to a portal for sales agents at Generali and the performance of the Treasury Web Portal for another Polish bank.

Advisory and implementation projects were also carried out with a view to streamlining the functioning of IT departments at financial institutions. Among other projects, the Company provides advisory services for Lukas Bank with the implementation of a project portfolio management system. At Generali, a system for the Central Customer Database has been produced and implemented. In the first quarter of 2009, Infovide-Matrix started a project related to the migration of a data warehouse to a uniform technological platform at one of the largest Polish banks.

Works on a project related to the obligatory reporting for the needs of calculation of capital requirement and capital adequacy ratio using the advanced method (Basel II) have also started.

In the energy sector, Infovide-Matrix carried out a project related to the implementation of the principles for the management and supervision of IT projects in the ENEA Capital Group according to which the investments in the IT area will be performed. Infovide-Matrix has also completed a project for RWE IT Poland aimed at establishing a set of recommendations intended for increasing the effectiveness of project activities. At RWE Stoen the implementation of an employee evaluation system using SAP has already started.

In the first half of 2009 projects for gas companies were also implemented. At Mazowiecka Spółka Gazownictwa, an implementation analysis was carried out for a billing system and an analysis concerning a Project Management Office system was started at PGNiG (Polish Oil & Gas).

In the retail commerce sector, Infovide-Matrix performed an advisory project for the largest Polish e-tailer – Merlin.pl. The cooperation was aimed at getting the IT department prepared for strategic changes within the Company. The basis of the project was a detailed analysis of the IT infrastructure and the creation of the System Maintenance Department.

In the industry sector, Infovide-Matrix implemented the ERP system at ITI Neovision Sp. z o.o., a provider of a new generation digital television ‘n’. The implementation will allow a significant improvement in the resource planning in the key areas of the enterprise. In the first quarter, a data warehouse implementation project at Classen-Pol was also completed. In the second quarter, a project for the development of requirements concerning a publishing system for WSiP was carried out.

In the first half of 2009, Infovide-Matrix was rewarded by MSI Polska with the title of “The Best IT Provider for Industry 2008”. The editorial team of MSI Polska for the third time granted titles to companies providing software, hardware and services to companies from the industry sector.

During the same period, the Company obtained a reward and title of “The Most Interesting Among The Best” for the implementation of a complex management system based on Oracle e-Business Suite package at ISD Polska. The ‘Nowy Przemysł’ (New Industry) monthly rewarded ISD Polska for a unique complex usage of business software in the companies belonging to the holding: ISD Polska, ISD Huta Częstochowa and ISD Trade. This title is granted for the most interesting implementations of IT solutions at industrial enterprises – innovative solutions having a considerable impact on the improvement in business administration, effectiveness and competitiveness.

Infovide-Matrix was granted the prestigious title of "Partner of the Year 2009" by the Management Board of Oracle Polska. The Company was granted that title for many years of strategic technological partnership in the field of the complete Oracle portfolio.