WARSAW, May 13 (Reuters) - Asseco Poland, eastern Europe's largest software maker, reported a 48 percent rise in first-quarter net profit, beating expectations, as it continued to benefit from recent increased demand and takeovers.
The group earned 75 million zlotys ($23 million), compared to 61 million forecast by analysts. Sales rose to 710 million zlotys, compared to expected 627 million.
The Polish group has been on a buying spree in the last years, establishing its position in the region and rest of Europe and culminating in the purchase of its larger local rival Prokom Software in April 2008.
But the company's margins were under pressure from the purchases of less efficient and smaller IT companies, as well as the slowing economy.
Net margin dropped to 10.6 percent from 12.3 percent a year earlier while operating margin dropped to 16.1 percent from 19.1 percent.
Asseco shares have risen 9.5 percent this year, outperforming a 4-percent gain of Warsaw's main WIG20 index .
(Reporting by Patryk Wasilewski, editing by Leslie Gevirtz) Keywords: ASSECO/ (patryk.wasilewski@thomsonreuters.com; +48 22 653 9700; Reuters Messaging: patryk.wasilewski.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The group earned 75 million zlotys ($23 million), compared to 61 million forecast by analysts. Sales rose to 710 million zlotys, compared to expected 627 million.
The Polish group has been on a buying spree in the last years, establishing its position in the region and rest of Europe and culminating in the purchase of its larger local rival Prokom Software in April 2008.
But the company's margins were under pressure from the purchases of less efficient and smaller IT companies, as well as the slowing economy.
Net margin dropped to 10.6 percent from 12.3 percent a year earlier while operating margin dropped to 16.1 percent from 19.1 percent.
Asseco shares have risen 9.5 percent this year, outperforming a 4-percent gain of Warsaw's main WIG20 index .
(Reporting by Patryk Wasilewski, editing by Leslie Gevirtz) Keywords: ASSECO/ (patryk.wasilewski@thomsonreuters.com; +48 22 653 9700; Reuters Messaging: patryk.wasilewski.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.