Jump in profit for first half of 2021
Interview with Denis Jašarević for Jutarnji list magazine.
IN2 Group was founded in 1992 and since then has developed into a significant provider of digitization services for various aspects of public administration and the economy. Today, it has more than 400 professionals operating in five countries in the region with more than 300 clients from the economy in general, the finance, insurance, as well as healthcare and public administration sectors. In 2018 it becomes part of the Constellation Software Inc. (CSI), which works with over 125,000 clients worldwide in more than 80 different verticals in the public and private sectors.
In mid-January, Denis Jašarević, IN2's Executive Director for Health and Public Administration, took over the position of the group CEO. After a little over half a year in the new position, we talked to him about taking over the projects that marked the past period and the development strategy.
How did the first half of the year go financially for IN2 Group?
Since CSI took over IN2 Group, the financial results have been consolidated, and are working more efficiently, but with the same quality level. We continued the positive trend from 2020 in the first half of 2021, focusing on product development and software solutions as well as on projects and segments in which we want to participate in the long run, especially in the areas of land administration, justice, insurance, investment products, healthcare and economy. This strategy provided us with a net profit of HRK 16.2 million in the first half of the year, which is an increase of 157 percent compared to the same period last year, and gross profit increased by 171 percent to HRK 19.4 million. EBITDA amounted to HRK 23.5 million and increased by 71 percent, while the EBITDA margin was 23.7 percent, 73 percent higher compared to the same period last year. Operating income amounted to HRK 99.1 million and is at a similar level compared to the same period last year. All in all, we are satisfied with the current position, but we want to continue to grow and develop, organically, but also through acquisitions. Moreover, for the last three years, IN2 group has been recording continuous growth in revenue and gross profit, and I expect this trend to continue.
You mentioned growth with acquisitions, and you’ve had a change in that this year. What kind of acquisition is this?
In May, we strengthened our forces with a new member of the group, the company SVAM Plus, which offers development, implementation and maintenance of its own business information system. For us, this was a logical move because SVAM Plus with its solutions fits perfectly into the strategic framework of our development and growth where one of the highlights is certainly the offer of solutions for digitization and integration of business systems.
You have been involved in the digitization of many aspects of public administration and the economy for many years. Can you single out some projects in the last year or two that are particularly interesting?
Last year, we participated in the development of the Digital Chamber platform for the Croatian Chamber of Economy, a project that was declared one of the most important economic events of the year. There is also the GeoHrvatska portal, on which an expert GIS team of our company IGEA worked in cooperation with the State Geodetic Administration, which enables easier use of spatial data. This year we implemented a new hospital information system in CHC Split, started the implementation of the business information system OPUS * ERP in the company Podzemno skladište plina, and the IN2HR project for human resources management in HOPS is underway. I have to mention our first research and development project co-financed from European Union funds that has started this year. We are especially pleased about the great cooperation with the experts of the Children's Hospital Srebrnjak, with whom we are working on the development of a platform for personalized nutrition in preschool institutions.
Which regional projects would you highlight? Are you planning a major regional breakthrough?
It is worth noting the completion of the first phase of the project of digitalization of the Mutual Health Insurance Company in Slovenia, which resulted in the implementation of a modern e-branch based on our digital platform Insurance2Digital. In Serbia, the implementation of the Insurance2 front office solution in Vojvodjanska banka, now OTP banka Srbija, has been completed, which enables the sale of the insurer's products in all channels of the bank. Our growth strategy is the same as for Croatia: to expand our business by participating in as many diverse projects as possible, but also to look for strategic partners who will want to become part of our group.
Your engagement in the field of health is particularly interesting because the vaccination process was under the magnifying glass in the first half of the year due to the development and operation of platforms for ordering and supporting the existing health information system. What is the role of the IN2 Group in this segment?
Healthcare is a segment in which we have been operating successfully for a very long time and now our portfolio is rounded up to all clinical hospital centers and clinical hospitals in Croatia, so all these institutions now use our hospital information system. The quality of our products and services for the health segment is recognized in the region, for example in Slovenia, but also in distant markets such as Vietnam or Saudi Arabia.
IN2 started to develop and introduce digital solutions in the Croatian health system in the 90's, and in the last ten years we have been cooperating closely with the Ministry of Health, among other things on the development of the Central Health Information System of the Republic of Croatia (CEZIH) eOrdering. It is within this project that we supported the ordering system for vaccination against covid through family medicine practices, which carried out more than 1.2 million eOrders through the national system. This channel proved to be the most successful in the phase of mass vaccination of citizens.
The ICT industry is also quite dynamic in terms of competition for the best professionals, especially considering that the competition for them is practically global. How does IN2 attract experienced developers today and how does it develop new ones?
The search for quality professionals today is a job in itself because it is the employees in the ICT industry who choose the employer. It is up to us to continuously invest in our people, either in education and mentoring, or in working conditions, IN2 culture and atmosphere. What IN2 provides is a great experience of working on complex solutions and projects, which then brings satisfaction with a sense of contribution. When it comes to capacity development, in addition to working on creating good jobs, we strive to encourage the ICT community to develop. Last year we became a strategic partner of the Šibenik business and innovation incubator Trokut, and within this partnership we will offer mentorships in the development of future ICT experts, some of whom may one day become part of our team. We have recently expanded the management of the IN2 Group with a special advisory position focused on the development of strategy and human resources, to further encourage the development of IN2 as a good employer and ensure that our organizational development follows our business growth.Source: Jozo Vrdoljak, Jutarnji list