Russian software major Softline reiterated its 2024 revenue growth guidance of more than 20% year-on-year (y/y) to RUB110bn ($96mn) and gross profit to grow by more than 27% y/y to RUB 30bn. EBITDA is expected to exceed RUB6bn, up 35% y/y in 2024.

Similarly to Astra software developer, Softline also confirmed its intention to allocate at least 25% of IFRS net profit in dividends for 2024, but not less than RUB1bn. In 9M24, the company increased turnover by 35% y/y to RUB71bn, gross profit by 92% y/y to RUB24bn, and EBITDA more than doubled year-on-year to RUB 4.6bn. 

In 2025, the company expects continued double-digit growth of key financial indicators: turnover in 2025 is forecast at RUB150bn (+36% to the expected value for 2024), gross profit at RUB43bn-RUB50bn, up 43-67% y/y, EBITDA at RUB8.5bn-RUB10.0bn, up 42-67% y/y. 

As followed by bne IntelliNews, Softline has been buying up IT assets, with such deals as the domestic manufacturer of cash register equipment Atol, payment equipment developer and POS-terminal vendor Inversum and the IT business of R.Partner Group.

Softline Group noted that it had conducted the first M&A deal in 2009 and since then has been consistently increasing its share in the Russian IT market, consolidating the industry in various business segments. 

According to the analysts cited in the company's press release, the average annual growth rate of the IT market is expected at 14% per annum from 2023 to 2028 in Russia. Softline's target market is forecast to grow from RUB1.8 trillion in 2023 to RUB3.4 trillion in 2028, up 90% over the period).

The fastest growing segments in the Russian IT market in 2023-2028, according to the forecasts, will be IaaS (CAGR 23%), software (CAGR 19%), data centre services (CAGR 15%), cybersecurity (CAGR 18%) and IT infrastructure equipment (CAGR 14%).

Softline floated the shares of its restructured domestic division on the Moscow Exchange and the Saint Petersburg Exchange, with a RUB160 per share price and total capitalisation of RUB45bn ($466mn).

This was three times lower than the valuation of Softline for its IPO in London in autumn 2021 (valued at $1.5bn and having raised $400mn). 

In October 2022 Softline established two independent units – Softline Russia and Softline Global – and sold the former for $1 to the company's founder and major shareholder, Igor Borovikov. The Russian unit of Softline was formed as a result of splitting the Russian and international business of Softline’s previous holding company, Noventiq.

At the end of July, Noventiq filed an application to delist its GDRs from MOEX, re-registration to the Cayman Islands and termination of its listing on the LSE (London Stock Exchange).

The owners of Softline before the placement were Atalaya (89%) and the management (11%). The placement was held at the expense of Atalaya's stake, with about 15.7% of the shares now in free float. Softline PJSC was formed on the basis of the Russian part of Softline's business, after Atalaya acquired 100% of this part from the founder Igor Borovikov in spring 2023. 

Softline Group includes such brands and companies as AHOFT, Develonica, SL Soft, Inferit, Infosecurity, Stakhanovets, Soica, Robovoice, DeskWork, Workflowsoft, SoftClub, CVT, Softline Academy, TC Engineer, Polymatica, Robin, Softline Digital and others.