Gloster's open order book up 70%

Gloster's open order backlog up 70%
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Gloster closed the third quarter of 2024 with a net order backlog of 2,584 million forints, which is 70% higher than in the same period of 2023. This represents a significant average growth rate of 54% (CAGR) in the growth of the order backlog for the first half of the year since 2021.

The open order backlog includes all products and services for which all subsidiaries of the Gloster Group have valid orders but which have not yet been fulfilled for customers. Gloster’s quarterly open order backlogs were as follows:

All figures are in millions of forints; these are unaudited, non-consolidated figures

Source: Gloster Finance Department

The Company’s order backlog increased by 70%, rising from 1,519 million forints in Q3 2023 to 2,584 million forints in Q3 2024. The order backlog shown includes orders scheduled for completion by the end of 2024. However, when combined with orders extending into 2025 and scheduled for completion beyond that year, the Company has more than 5.5 billion forints in outstanding orders, which provides a strong foundation for our future growth plans.

The system integration business unit reached a milestone in the first half of the year in the area of service activities (installation, operations, and engineering work). Management expects significant growth in the second half of 2024 compared to the first half, which will open up new opportunities for the business unit. In addition, the division has successfully secured high-value, long-term contracts that further strengthen its stability. Changes in the economic environment and new technological trends have created new opportunities, but they have also brought challenges. However, long-term contracts and the growing volume of projects can provide a stable foundation for future growth and innovation. Overall, the third-quarter results give cause for optimism and reinforce our commitment to continuous development and innovation.

The cloud business unit’s open order backlog remains stable compared to the previous period, and sales performance is balanced. This positive trend reinforces the business unit’s reliability and provides a solid foundation for further growth. Systemfarmer Zrt. has signed a three-year contract worth a total of more than 600,000 euros with an international energy company that employs 200,000 people in more than 50 countries. We have included the first year of this contract in our open order backlog report.

In the international software development sector, we are seeing stable business performance from both Gloster - P92 Informatikai Kft. and Gloster – Minero IT Hungary Kft., and we expect a steady stream of orders from our clients. All of our framework agreements remain in effect, and we can be certain of a steady stream of orders for this year.

Sony Music signed contracts with its current development teams this September for a two-year period. The order covers a total of 40 people and is valued at approximately 2.5 billion forints over two years. In line with the framework agreements with BMW and Audi that were renewed this year, the first orders have also begun to arrive. We expect a similar order volume from our other clients next year as we had this year. New clients are also on the horizon, though so far contracts have been signed with only one or two smaller clients. We expect the work of our international sales teams to yield results primarily next year.

Analysts' Target Prices

Glostert is followed by Erste, an independent investment firm. The link to the full analysis and the target price can be found in the table below:

In this report, the quarterly backlog of open orders reflects the value of orders already contracted at the Group level but not yet fulfilled, as recorded as of September 30, 2024. The quarters referred to in this report refer to calendar quarters. This statement contains preliminary, unaudited, and unconsolidated data.

Upcoming, Scheduled Releases

Q4 2024 Open Order Backlog Report - Second Week of January 2025

This prospectus was prepared by Gloster Infokommunikációs Nyrt. (headquarters: 2142 Nagytarcsa, Csonka János u. 1/A, Building A/2). This prospectus contains only factual information and reasonable conclusions based on reasonable calculations, which have been disclosed by the authorized parties in accordance with applicable legal obligations. This prospectus does not constitute an “investment recommendation” within the meaning of Section 5(1)(9) of the Capital Markets Act (Act CXX of 2001 on the Capital Market) and, pursuant to the Securities Act (Act CXXXVIII of 2007 on Investment Firms and Commodity Exchange Service Providers and the Rules Governing Their Activities), does not contain any analysis, recommendation, or other information regarding investment analysis, financial instruments, exchange-traded products, or their issuers, the disclosure of which, on its own or in any other way, could influence an investor to make their own or another person’s money or other assets, in whole or in part, dependent on the effects of the capital market. Gloster Infokommunikációs Nyrt. and its representatives assume no liability for investment decisions based on conclusions drawn from the information contained in this prospectus, nor for any adverse legal consequences or financial losses resulting therefrom.

Nagytarcsa, October 9, 2024

For more information:

Dr. Adrienn Karlovich-Szabó

investor relations officer

karlovich.szabo.adrienn@gloster.hu