Arteria S.A. Capital Group reports earnings of PLN 5,7 million for 2010

28.03.2011

Arteria S.A. Capital Group’s annual report, out today, reveals that the Company generated PLN 111,06 million in sales, its EBITDA reached PLN 13,1 million, while net earnings attributable to the parent company were PLN 5,7 million, which represents an increase of 36% over the corresponding period last year (when the net earnings were PLN 4,19 million).

 

In the reporting year 2010, Arteria S.A. Capital Group generated revenues of PLN 111 million, compared with PLN 131 million for the same time period last year. The decrease in revenues was primarily due to a change in the operating model pursued by the subsidiary Rigall Distribution Sp. z o.o. and to a transition to a new system of settling accounts with Citibank Handlowy S.A. Since 1^st April 2010, the Company has been rendering services to Citibank Handlowy S.A. according to new rules which provide more safeguards and ensure steady margins despite reduced operations and revenues lower than in 2009 (PLN 30 million down on a whole-year basis). The new business model of cooperation enabled Rigall Distribution to generate profits on operating activities during each of the three consecutive quarters of the year 2010.

Through implementing such measures as tight cost control and monitoring the effectiveness of individual projects, in 2010 the Arteria S.A. Capital Group was able to reduce consolidated costs of sales by 17,21%, when compared to the figure for year-end 2009. As a result, EBITDA reached PLN 13,1 million (an increase of 44%), and the net earnings attributable to the parent company rose to PLN 5,7 million, compared with PLN 4,19 million generated in the corresponding period last year (an increase of 36%).

 

When examining the Arteria S.A. Capital Group’s results for 2010 on a cumulative basis, one needs to take into account the fact that in the first quarter of 2010 the Company incurred one-off costs of PLN 1,8 million, of which PLN 1,5 million was used to fund the restructuring of Rigall Distribution and to launch operations of the Sellpoint Finanse financial services provider, while the remaining amount of PLN 0,3 million was used to cover the cost associated with an A-series bonds issue.

 

During the fourth quarter of 2010 alone, the capital group generated net earnings of PLN 1,9 million. The quarter was successful because all the three business divisions were able to generate profits. It was during this fourth quarter that Arteria S.A. Capital Group began to conduct its operations within a new, consistent management structure, based on three divisions: a call centre division, an active sales division and a sales support division as well as nine service centres. The new business model of organisation activity, implemented in the first quarter of 2010, allowed individual companies making up the group to achieve significant cost savings and to improve operational effectiveness throughout 2010. The Company’s results, particularly for the fourth quarter 2010, are evidence of Management’s firm intention both to improve profitability and reduce debt levels. These goals define the strategic direction that Arteria S.A. Capital Group will pursue in the year 2011.