Strong growth at Gloster: sales revenue to exceed 10 billion in 2023

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Gloster Infokommunikációs Nyilvánosan Működő Részvénytársaság (company registration number: 13-10-042012; registered office: 2142 Nagytarcsa, Csonka János utca 1/A A/2.; hereinafter: Company, Gloster) hereby informs its esteemed investors of the following in accordance with the relevant legislation and the General Business Rules of the Budapest Stock Exchange.

Strong growth at Gloster: sales revenue to exceed 10 billion in 2023

The publicly traded IT company has released its 2023 report

Nagytarcsa, April 23, 2024. - Gloster, which operates in 8 locations across more than 20 countries on 4 continents with a workforce of 274 employees, saw its adjusted net revenue increase by 75 percent to 10.3 billion forints in 2023, with revenue from foreign sales rising by 130 percent to 4.6 billion forints. Compared to the previous year, adjusted EBITDA grew by 29%, reaching 976 million forints.

Having exceeded its export targets and set a new adjusted revenue record in 2023 compared to previous years (10,319 million forints, +75%), this up-and-coming international IT services company listed on the Hungarian stock exchange is growing rapidly. Growth remains remarkable: domestic sales closed at 3.9 billion forints, a 46% increase, while adjusted foreign sales, based on foreign currency, closed at 4.6 billion forints, a 130% increase.  

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All figures are in millions of forints; they are consolidated but unaudited. The audit is currently in progress.

* Adjustment factors for 2022: establishment and reorganization, 4,000 eFt; reclassification of KIVA to payroll expenses, 56,683 eFt

** Adjustment factors for 2023: establishment and reorganization, 28,850 eFt; reclassification of KIVA to payroll expenses, 109,574 eFt; P92 revenue and EBITDA calculated for the full year 2023

Gloster’s largest acquisition to date contributed significantly to this growth: the parties signed the agreement for the acquisition of P92 IT Solutions Kft. on June 15, 2023. Since the transaction was not closed until August 3, 2023, but according to the purchase agreement, the parties will share the total 2023 profit in accordance with the new ownership structure, the company has included in the newly published report growth figures adjusted for P92’s pro-rata figures, total annual revenue, and EBITDA.

In 2023, the Group exceeded the targets for the proportion of export revenue set out in its 2026 strategy. According to the recently published report, the IT company—listed on the Standard Market of the Budapest Stock Exchange—saw its adjusted net revenue grow by 75% to 10.3 billion forints, with revenue from foreign sales increasing by 130% compared to 2022. The resulting 4.6 billion forints in foreign revenue accounts for 45% of total revenue, which is already higher than the 30–40% target set out in the long-term strategy.

The proportion of recurring revenue also rose by 63% to 6.3 billion forints in 2023, exceeding the previously set strategic targets. As a result, the Gloster Group’s revenue from long-term, renewable contracts reached 61.1% of total revenue, which is lower than the ratio achieved in 2022; this is due to an increase in one-time project revenue in the Systems Integration business unit.

Rising revenue was accompanied by an increase in adjusted EBITDA: Gloster reported 976 million forints on this line item in 2023 (EBITDA under IFRS was 730 million forints), which is 29% higher than the previous year.

Net income and EBITDA as a percentage of revenue were reduced by one-time expenses related to the integration of the 10 acquired companies, the transition to IFRS, and preparations for the change in stock exchange category. The International Software Development business unit remained the engine of growth in 2023 as well, with its net revenue expanding by +137%—including the most recent acquisition—which significantly improves the profitability of the entire group.  The company’s System Integration division also had a successful year, with revenue up 56%, and the Gloster Cloud division also had a strong period, posting 19% growth despite the fact that its revenue comes primarily from the domestic market, which is currently somewhat stagnant.

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Consolidated, unaudited figures in millions of forints; *adjusted: calculated using P92's full-year revenue

With the acquisition of P92, Gloster also significantly increased its workforce, as the group’s total number of employees reached 274 at the end of the year, compared to the 199 recorded last year.

“The Gloster team once again delivered outstanding results in a difficult year. We’ve completed the company’s largest acquisition to date, changed our stock exchange classification, and transitioned to IFRS reporting—all while continuing to grow organically. All credit goes to the team; I believe investors can rightly feel that they invested in the right growth storywhen they became our shareholders. We are continuing to move forward with our 2026 strategy, to which Gloster remains firmly committed,”said Viktor Szekeres, Chairman of Gloster’s Board of Directors. He emphasized that the current figures also show that the metrics the Company’s management views as positive—that is, those that signal growth (such as the ratio of recurring revenue to export revenue)—are driving the Group’s key profitability metrics (EBITDA, total net revenue).

“In addition to implementing the Gloster Level Up program in 2024, which will save us 200 million forints annually, we are also devoting significant resources to further developing our international markets. The goal is to expand into new, premium markets such as the DACH region, the U.S., the United Kingdom, and Scandinavia. “The results of the program are expected to have a visible impact on net income,” emphasized Viktor Szekeres. He added that experience to date shows that the experience gained in the German market provides an excellent foundation for Gloster to meet the high service standards expected in the targeted markets.

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About Gloster

Gloster is a broad-spectrum IT service provider listed on the Hungarian Stock Exchange. Over the course of its more than 20-year history, it has evolved from a hardware-focused garage startup into a software-focused international mid-sized IT company. Its founder, co-owner, and chairman of the board is Viktor Szekeres. Thanks to Gloster’s aggressive acquisition strategy, the company has successfully completed ten acquisitions since 2018 and expanded its operations into the areas of systems integration, IT security, public cloud-based solutions, and international software development services. The group currently employs a team of nearly 274 people; its pre-audit adjusted revenue for 2023 was 10.3 billion forints, and its EBITDA was 976 million forints. Gloster continues to seek out IT companies whose acquisition will help it achieve its strategic goals, while continuously integrating solutions into its operations that make its existing portfolio more efficient.

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Nagytarcsa, April 23, 2024

Gloster Infocommunications Plc.

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Further information:

Dr. Eszter Bassola

investor relations officer

bassola.eszter@gloster.hu