Okay. Let's start. Welcome again. Let's start a few with short highlights about Q2, how it went. We see visible improvement in Dedicated Solutions business unit. It's mostly reflected in backlog for Q3 and whole year, as well as for 2026. More about this in a moment, but it's growing quite significantly. Dedicated solutions had a pretty good quarter with big growth year- over- year, but still we see a lot of room for further improvement and results in a longer period. As we mentioned, during Q2, there was a reconstruction of government in Serbia. Something that happened also during 2024. This is completed. Government is working, but it caused some delay in projects opening and effectively some things which we hoped to be in Q2, they slipped over to Q3. In Payment Business Unit, we see slowdown in Q2, and it's caused basically by two areas.
One is India and performance of this merchant business in India, where we, following our quite strict accounting policy, have covered receivables with write-offs. This has negative impact. Second is also in e-commerce, but this enterprise part in Turkey, where one of the major banks we have, one of those four biggest we have, is moving towards in-house Payment Gateway solution. This transfer of transactions to their in-house system is happening a bit faster than we assumed. This has a negative impact on Q2 numbers. It was a pretty good quarter for POS-related services with pretty many equipment deliveries and also positive for direct-to-merchant lines, so electronic cash registers and IPD. This year is pretty good for cash conversion. For those of you who monitor us a bit closer, you can remember that H1 in 2024 was not strong for cash generation. This time, it's pretty good. We are satisfied.
This is despite those collection issues in India and Middle East we were describing before. For banking, positive, and the results are a bit higher than we forecasted, than we expected. This is mostly thanks to core solutions and smaller new modules we are currently implementing to various banks in the region. It's not a matter of a few big projects, but rather many of them, but of smaller value. Traditionally, some insight about transactions in payment. In e-commerce, we processed 570 million transactions during Q2 with 6% growth despite this transition of one client to in-house solution in Turkey. Very good dynamics in IPD, 63%, and pretty good in processing of physical transactions on ATMs and POS. Let's move to results. First, Q2. Just to remind you, first two columns are total numbers as we present them in our financial statements. This includes hyperinflation reporting for their Turkish operations.
Here we have some change year- over- year, which is related with lower inflation rate and bigger difference between average exchange rate of Turkish lira towards zloty and exchange rate on balance sheet date. As in previous year, effect on operating profit of hyperinflation accounting was positive. This year is EUR -200,000 negative. The result generated in financial activity is mostly related with revaluation of goodwill. Last year, it was around EUR 1.4 million positive, and this year, it's only EUR 300,000. At the end, it's not bad that the economy is stabilizing and the inflation is dropping, but for those adjustments, it has impact, as I mentioned. Let's concentrate on those numbers, excluding this non-cash hyperinflation reporting. Here on top line, we have growth of 11% year- over- year, mostly on our own activities. By activities, I understand services, licenses, maintenance, and so on, but our own, not resale.
Around 84% of this increase is caused by own activities. On operating profit, 22% growth year- over-y ear, and pretty similar to 2021 in Polish zloty. Previous quarters, there was always a difference between euro and Polish zloty due to strengthening of Polish zloty, but now it stabilized and already in Q2 2024, it was pretty strong. Below operating profit, we have a bit lower dynamics on net profit. Here we have two reasons or two effects. One, financial activity. Here it's positive. The result on financial activity is higher by EUR 900,000 year- over- year, and this is mostly related with revaluation of contingent liabilities and put options for minority states. We have higher costs of dividends to non-controlling interest in financial activity, but still the balance is positive.
When talking about taxes, here we have income tax higher by EUR 1.6 million year- over- year with effective tax rate higher by 6% year- over- year. What contributes to this EUR 1.6 million? About around half a million is simply related with growth of operating profit and pre-tax profits, so natural change. Another EUR 500,000 is effect of low base. By low base, I understand that during 2024, there were recorded adjustments of corporate income tax for 2023. They were positive. Positive, I mean, they decreased taxes in 2024, which was kind of one-off. We have by around EUR 200,000 higher taxes related to dividends, mostly withholding taxes. Our dividend asset was higher this year. It was already paid. Obviously, we collected more from our subsidiaries. Some of the apps, which are not in the EU, generate taxes.
It can be withholding taxes or some additional tax which needs to be paid here in Poland on such a dividend based on WHT agreements. We also included some provision for potential PR2 tax. It's early estimation. It's not sure if it will be this or a bit different amount, but to be conservative, we included EUR 100,000 provision for potential tax. These are the reasons for this a bit lower dynamics on net profit. When we move to segments, as I already mentioned, Dedicated Solutions is the one which was very strong and it drives the results in Q2 year- over- year. EUR 3 million higher than in 2024. We've pretty flat revenues, but the structure of those revenues is again changed. It's more in own than in resale of third-party solutions. Geography, I will comment in a moment, but most of this growth is in Bosnia and Herzegovina.
Banking, pretty good. Above our initial assumptions, growing revenues by EUR 1.6 million, slightly lower operating profit. To recall you, our cycle is that we will increase compensations after annual appraisals from 1st of April, and this is visible here, those changes. Last line, Payten, biggest payment, revenues growing by almost EUR 9 million. As you see in all business lines, we have increased. This is direct-to-merchant, electronic cash registers, and IPD. The first on the list, the growth is mostly in Croatia, but also in other countries like Romania and Western Europe. E-commerce, we have growth despite the situation in Turkey. Growth is from India, Middle East, Serbia, and Croatia. Turkey, it was flat year- over- year. In more traditional business of ATMs and POS outsourcing, ATMs are pretty stable, increased year- over- year. Of course, some changes between geographies.
More deliveries this year in Croatia, less in Romania, but it's natural that deliveries do not happen each quarter. For POS, big growth of revenues in Western Europe due to deliveries of Android POS, but with lower profitability, lower markups than it used to be in two previous years. On top of this, pretty good POS for Croatia and Central Europe, so Czech and Slovak. When talking about EBIT, as you saw on the previous slide with total numbers, it's slightly lower than last year, and the structure is a bit different than in the previous quarter. Lower share of e-commerce and processing plus electronic cash registers and IPD. This is mostly due to e-commerce where we have dropped, and it is directly related with Turkey, what I already touched, plus India where we booked write-offs for receivables. Let's move to structure by geographies.
Very strong Southeastern Europe, EUR 3.6 million higher result year- over- year. As I already mentioned, good and strong big increase in Bosnia and Herzegovina thanks to dedicated solutions. Very nice growth. Croatia, EUR 600,000 higher result, mostly thanks to payment, e-commerce I have mentioned, POS I have mentioned, so those lines, and also in Dedicated Solutions. Pretty nice with a bit lower results in banking segment. Other geographies in Southeastern Europe, slightly higher, lower, but no major things. Some recovery in Central Europe, mostly thanks to banking and Dedicated Solutions, in both cases in Romania. Western Europe, here lower result despite higher turnover, but as I mentioned, bigger deliveries, but with lower markups. On top of this, last year, we did have some AI-related projects, software projects, and this year we didn't have them. Turkey, I already commented, this drop year- over- year is related with payment and E-commerce.
We have obviously increase of costs, which in Turkey is obvious, and it happens every year, but we lost part of revenues. In India, this negative result is directly related with write-offs for receivables, which we have booked following our policy management there. They say this is the culture. It should be recovered, but we want to be prudent, and we do it always as our policy says. Results for H1, so accumulated for two quarters, very similar picture. I will not go that deeply into details. As you see on top line, we have a very similar increase, 12% year- over- year. On operating profit, it's slightly lower, 15%, due to Q1, which was with lower dynamics than Q2. Here we have a bigger difference between Polish zloty and euro figures. I mean, dynamics year- over- year.
This is due to exchange rate in Q1, when in 2024, in Q1, zloty was not that strong as it is since Q2 2024. On net profit, here only 1% growth year- over- year, but here, please remember about this one-off from Q1, the loss which was recognized on sale on disposal of Moben, the subsidiary of the group. At the beginning of Q1, we sold, and accounting effects of writing off entries from equity landed in P&L, and it hit our result by EUR 1.5 million. If we exclude this, it looks a bit or significantly better. About other elements in finance activity, they are pretty the same as I commented for Q2. The same with taxes, maybe with one exception. Comment about prior year adjustments of tax in previous year. Difference year- over- year. On Q2 only, it was EUR 0.5 million. On accumulated data, it's EUR 700,000.
Let's move to business units. Here, on accumulated data, all lines show growth year- over- year. Again, the strongest one is Dedicated Solutions, which generates most of this growth, but also banking after a very strong Q2 is positive, EUR 200,000 year- over- year increase, and payments EUR 0.5 million increase year- over- year. For details in payment, again, I will not comment much, but as you see, all lines show growth year- over- year, including ATMs where we did have deliveries, but this time more in Q1 than Q2. For geographies, again, a bit similar. Strong Southeastern Europe, mostly thanks to Bosnia and Croatia. A bit of slowdown in Serbia, which accumulated to EUR 0.5 million. This is mostly related with digital Dedicated Solutions. This topic I mentioned during highlights, some delay in contracting. We hope for H2 to be better. Backlog shows that it should be better.
Good quarter for Central, good half year for Central Europe, and slowdown in Western Europe. This is the same comment as I gave to Q2. The same reasons, only bigger numbers due to two quarters. Middle East, on Q2 only, it was positive. Here we have negative, but in case of Middle East, we also included some write-offs. The same challenge with collections still. We included write-offs following our policy, but in Q1. Turkey dropped EUR 1 million year- over- year, but it's directly effect of Q2, which we already discussed. Let's move to the cash flow and liquidity. I already mentioned that it's pretty good, and we are satisfied. As you see, for Q2 H1 this year, operating cash flow is the worst, EUR 24 million, significantly better than previous year. We've also better conversion of EBITDA to operating cash flow, 67%. It's pretty okay.
Usually, in our case, H1 is weaker than H2. This is somehow natural, especially in enterprise business where we have big projects with big clients who have their budgets, and they have a bigger push for closing and approving some stages and invoicing in the second half of the year than at the beginning. Better operating cash flow. Some of this operating cash flow allocated to investments in fixed assets and intangible assets, so CapEx, around EUR 9 million. Mostly this one related with projects, so for outsourcing and own networks. Also, some of it allocated to M&As realized during this first half of the year, plus payment of some earnouts for previous acquisitions. When we look at the last 12 months, accumulated data, operating cash flow, almost EUR 70 million. It looks okay. Yes.
After this week, previous year, when it was EUR 48 million, it looks like we are back on track, and operating cash flow is similar to the one in 2023. This one in 2023 was, let's call it, pushed by extraordinary events when some clients paid us last day of or last days of the year, and we have not settled our liabilities towards vendors. This is reflected here in those KPIs for cash conversions. Like nominal one in 2023 was 100%, adjusted for those one was almost 90%. As you see, now last 12 months shows 90%. It looks okay, and we are pretty satisfied. This cash flow helped us to reach this current liquidity situation. EUR 68 million cash. Short term, so increased by almost EUR 5 million versus end of the last year. Short-term loans, they increased by EUR 4.5 million, but it's not mostly due to taking additional short-term loans.
Just those loans we've planned repayment scheduled, they are closer to repayment, and some installments are now presented in short term. No big changes on leases, but it's like a regular business. Dividend, here we have a pretty big dividend liability. Previous, we paid dividend last days of June, and this year, we paid our dividend and also some dividend of our subsidiaries. They were paid in July. For M&A liabilities, those in short term, they increased by EUR 14 million, but this is mostly, again, due to reclassification because these are put liabilities related with put options of minorities of BSTS, Helios, and IFT&Pay, which were at the end of last year presented still in long term, and now they are falling into this 20-month window, so they are in short term.
It doesn't mean all of them will be realized because it's only option, but we have to present them here. So net cash minus almost EUR 6 million. When we move to net operating assets, EU 30 million on plus, this difference between receivables and liabilities, it increased comparing end of the year, and it's similar as half of the year in 2024. This, as I already mentioned a bit, it's kind of cycle where we do have more recognitions during the first half of the year with approvals and invoicing coming later closer to the end of the year. With inventory, we managed to reduce the balance and free some capital from this. This is what we commented after Q1 that we'll be working to reduce. We have some orders coming for the delivery, and it is visible.
Of course, we will never reduce this to zero because in payment business, we have to have a stock. This is about liquidity, and let's move shortly to Outlook for 2025. As always, we present backlog. No big changes in overall. 13% year -over- year increase of backlog for Q3 and very similar for whole year. It shows there should be continuation of trend. As you remember, our revenues increased 12% year- over- year in H1. Backlog shows it should continue similarly. Some changes between business lines. Stronger backlog in AC parts, so banking and Dedicated Solutions where we have 22% for Q3 and 15% for whole year. It's even stronger in Dedicated Solutions, a bit lower in banking. Some slowdown in payment parts, 6% for Q3 and 12% for whole year. This is related with this Turkish story I already mentioned. This is it. Do you have any questions?
You can write on chat or maybe raise hand, and you will be given with voice option. Okay. You offer a wide range of different products and services. What are the most important products, services, core products in different segments? The Constellation Group has now acquired additional shares from Asseco Poland. So far, we've been very reserved about this. Are there any remaining obstacles or restrictions, and are any regulatory approvals still required? Okay. Let me start with the second part. I think this is honestly more a question towards Asseco Poland than us. We are not involved in the process. We are not part of this process. We know this from the press, that the Constellation Group needs to get approvals from the European Commission and some local regulators. This is in progress, but I have really nothing to share about the status. Please contact Asseco Poland for this.
About the products and services, what we offer, this is a bit longer story for a longer discussion, but let me start with payment. Yes. In payment, we have basically those four business lines which I presented on the slide with results. Let me maybe go there. It will be easier to describe. Those results are, sorry, those business lines are product-based. Yes. The first line is CRM and IPD. We offer directly to merchants, so small restaurants, cafes, retailers, electronic cash registers, and POSs, so terminals for payment, but of course, with this service of processing the payment. This is something on the line which is strategic for us, where we want to grow with this direct-to-merchant approach. We have e-commerce and processing. There are two main areas.
One is payment or free Payment Gateway, which we offer to enterprises, so banks and big fintechs, where we provide mostly in software as a service mode our Payment Gateway. They use our Payment Gateway solution. Second is payment aggregation mode where we work under e-money license, where we process transactions directly for merchants. Again, our clients are not big enterprises, but different smaller or bigger clients. The third one is related with processing of transactions done on ATMs or POSs, again in SaaS mode, directly for enterprise clients, so mostly banks, but also some independent players like independent ATM networks, for example. We have third-line ATMs where we provide ATMs and related services. We can offer ATMs as simple delivery and maintain mode, but also as an outsource mode where ATM software, everything stays on our balance sheet.
We provide to banks a complete solution which includes ATM software and services related. We provide working devices. The same is with POSs, where we can deliver POSs together, of course, with software, and always software is our own solution, own application. We can deliver, sell it to banks or some other players and then maintain them or provide them in outsource. They stay on our balance sheet, and for a monthly fee, we rent them to banks. This is in a few words for payment. In banking, we basically offer everything what banks need to operate, starting from big Core Banking, Core Banking modules, those basic ones, through Omnichannel to security. We can offer everything, but we can also offer only selected module which covers some part of processes or functionalities banks need.
This growth this year is on, for example, thanks to new modules, module financial gateway, which we offer to various banks in the Southeastern Europe region. The last one, most difficult, is Dedicated Solutions. There we offer different things. We have still declining, but still we have this part where we deliver third-party solutions, so equipment, infrastructure, some third-party licenses. This is not our strategic focus. The second part where we have our own solutions and own software, here are pretty many different ones, but those which are most important, where we focus and we put attention to are Intelligent Traffic solutions. These are systems to monitor traffic on highways, in tunnels, in general solutions for traffic controls, regional traffic control centers. Based on the same platform, we also offer Smart City solutions to monitor traffic in the cities. This is one.
Second is from those most important is solutions for utilities, mostly energy sector. This is billing solution, Smart Metering solutions with many surrounding solutions around. This platform is pretty flexible, so it can be used also for gas industry or water providers, different ones where there is this metering need and calculating billing to manage huge numbers of clients. Those are the two most important. A bit less are solutions related to business process management, which are also reported in Dedicated Solutions. I hope this clarified a bit. If you would like to get more, please contact me directly one-to-one. I can go a bit more into the details, but it will take pretty more time than we have here. Any other question? If not, then I invite you to direct contact. Whenever you have questions, please feel free to contact us.
We'll be happy to organize a call or meet if you are in Poland. We can discuss in more details. Thank you very much for joining, and welcome to direct contact or join our Q3 conference. Thanks.