The SIA Group aims to strengthen further its international presence, especially in central Europe, through the re-launch of its subsidiary GBC (which from today will be known as SIA Central Europe), leader in Hungary in the management of ATM and POS terminals and in processing of payment transactions.
The objective of SIA Central Europe, in line with the three-year strategic plan of the parent company, is to consolidate and expand the presence of the SIA Group in Hungary and in the target countries of the central European area (Austria, Romania, Slovakia, Czech Republic, Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Albania and Macedonia), through the offering of innovative and competitive technology solutions in the field of payments for financial institutions and corporates, in accordance with the requirements of "compliance" to European standards (SEPA, PSD, etc.).
The Hungarian company will thus represent the hub of the SIA Group in central Europe, more specifically becoming the "competence center" for ATM and POS terminal management and transactions switching.
The geographical area
Central Europe plays a role of particular strategic importance for the SIA Group since, according to World Bank figures, the gross domestic product of the countries in this area will growth on average between 2010 and 2013 more than twice as much compared to the countries in the euro-zone (3.9% vs. 1.7%).
In addition, the same period will also see a sharp increase in card transactions with a CAGR (Compound Annual Growth Rate) of 10% compared to 6% in the euro-zone, in the number of payment cards (CAGR of 9% compared to 3 %) and, more generally, in the overall volume of payment transactions with a CAGR of 10% compared to 5% (source: Datamonitor and Boston Consulting Group).
Economic performance and business trend in 2010
GBC (which takes the name SIA Central Europe) closed 2010 with a value of production of €8.2 million, an operating margin of €1.9 million and a net profit of €1.7 million.
The company employs a staff of 50 and has a portfolio of over 60 customers: in 2010, it managed 105 million card transactions representing approximately 30% of total transactions in the country, an increase of more than 7% over the previous year.
SIA Central Europe currently has approximately 20% of ATM market share (n. 1,626) and about 30% of POS terminals market share (n. 18,533).
SIA Central Europe objectives are very ambitious and aim to double its performances in medium term.
Business Areas
The activities of SIA Central Europe will focus on four business areas:
- full processing (issuing and acquiring) of transactions with debit/credit, prepaid, loyalty, gift and fuel cards, to be offered to a wide range of customers in the financial sector and, among others, to oil companies and mobile phone operators;
- terminal management and value-added services, including advanced solutions for the
- management of ATM and POS terminals, frauds and disputes to be offered, among others, to virtual merchants and large international retailers;
- compliance and reporting with innovative technology platforms for surveillance of operations on financial markets for major banking groups;
- network services for connectivity and messaging via the SIAnet broadband infrastructure, a high-speed network used by banks, retailers as well as payment institutions (the new non-bank players introduced by the European Directive PSD).
"The macroeconomic data confirm the positive trend of the countries in central Europe which show high growth rates and also a high demand of innovative services - commented Massimo Arrighetti, CEO of SIA - For this reason, we have decided to focus on this area and strengthen our Hungarian subsidiary, which, in fact, constitutes an important outpost for all the technology solutions of the Group."