Business Forum • 30 August, 2024 at 6:43 PM
Arctic Stream, an IT infrastructure and security integrator listed on the Bucharest Stock Exchange (BVB) under the symbol AST, reported a 19% increase in revenue and a 2% rise in net profit in the first half of 2024, according to the half-year results communicated to the BVB.
In the first six months of 2024, the company's revenue increased from RON 62.70 million to RON 74.44 million (€14.95 million), and profit rose from RON 5.83 million to RON 5.92 million (€1.19 million) compared to the first half (H1) of 2023.
Compared to two years ago (2022), Arctic Stream's revenue in H1 2024 more than doubled, increasing by over 2.7 times from RON 27.84 million (€5.64 million), while net profit grew at a similar pace, rising by 2.9 times from RON 2.04 million (€0.41 million).
The net profit recorded in H1 2024 represents 51.72% of the amount projected in the company's Revenue and Expenditure Budget (BVC) for the entire year 2024 (RON 11.46 million), indicating that the results are in line with this year's forecasts.
“The financial results from the first half of 2024 strengthen our optimistic outlook on the IT integration market in Romania. We recorded a 19% increase in turnover, reaching over RON 74 million, and a 2% increase in net profit, which indicates that we are on track to meet our annual objectives. The opportunities we are currently managing to give us confidence that we will meet the forecasts in the Revenue and Expenditure Budget. Furthermore, the strategic partnership with Data Core Systems is in its advanced stages, and we expect it to be finalized at the end of Q3 or the beginning of Q4. We maintain our strategic objectives, such as Cybersecurity, Cloud, innovation (European Funds / European Commission, PNRR), and training, and these directions will continue to be our priorities. We are confident that, in the long term, those who have supported us and believed in our work will be rewarded by the market. I would also like to thank our investors and look forward to meeting them in person at Arctic Stream Investor Day, on October 3, 2024,” said Dragoș Octavian Diaconu, Founder and CEO of Arctic Stream.
The third edition of the Arctic Stream Investor Day is scheduled for Thursday, October 3, 2024, and details for physical or online participation can be found on the company's website. The company's management plans to discuss with investors the main achievements of the past year, the IT solutions integrators market, as well as developments within the team in terms of technologies and skills.
The agenda will also include a presentation of the partnership with Data Core Systems (DCS), a cybersecurity company in which Arctic Stream will hold a 23% stake after all legal procedures are finalized – expected this fall. DCS is a significant player in the cybersecurity services market, with clients including 10 of the top 10 banks and major utility providers in Romania, the top 5 large insurance companies in the CEE region, as well as companies from telecom, manufacturing, media, retail, and other sectors.
Regarding other developments in recent months, in June 2024, Arctic Stream announced the signing of a significant contract – valued at least or over 10% of the turnover recorded in the previous fiscal year. The contract, valued at approximately 16 million RON, has an implementation period of 120 days and is expected to be completed within this year.
Also in June 2024, Arctic Stream was subject to an inspection by the Competition Council (CC), promptly announced on the BVB portal, along with other companies in Romania operating in the IT equipment sales market. The company provided the CC inspectors with all the requested information but has not received any official communication regarding an accusation of potential irregularities in its activity. Arctic Stream reminds all stakeholders that it complies with all legal provisions in its operations, including those related to competition.