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4iG Q1 profit climbs on strong revenue growth

First-quarter after-tax profit of listed IT company 4iG rose 11% year-on-year to HUF 312 million as revenue jumped but margins narrowed, state news wire MTI says, citing an earnings report released ahead today.

Revenue increased 78% to HUF 8.62 billion, but operating costs climbed at a faster clip, rising 82% to HUF 8.08 bln.

Basic earnings per share came to HUF 3.4 for Q1.

4iG said it has "maintained its development dynamic" even though the pandemic situation has made business and operating conditions on the domestic and global markets more difficult. It put its 2020 order stock at over HUF 23 bln.

The company said the changed economic environment could produce more contracts and create opportunities for inorganic growth.

It added that seasonality in the IT sector is likely to concentrate its revenue in Q3 and Q4.

4iG said it expects revenue growth of around 20% or more in 2020 and around 10% or more beyond 2020.

It targets an 8-10% EBITDA margin in the coming 2-3 years.

4iG said it aims to become the leading IT system integrator in Hungary and a "significant player" in the CEE region through organic growth and acquisitions, financed with bonds and loans as well as its own cash resources.