09.05.2018
GFT Technologies SE DE0005800601
DGAP-News: GFT Technologies SE: GFT starts financial year 2018 with revenue and earnings growth
DGAP-News: GFT Technologies SE / Key word(s): Quarter Results
GFT Technologies SE: GFT starts financial year 2018 with revenue and
earnings growth
09.05.2018 / 07:05
The issuer is solely responsible for the content of this announcement.
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GFT starts financial year 2018 with revenue and earnings growth
* Revenue up 5 percent on previous quarter to EUR 106.99 million
* Consolidated earnings (EBITDA) of EUR 10.05 million almost doubled
compared to previous quarter
* Realignment of Americas & UK segment completed with significant
efficiency gains
* Double-digit revenue growth in Germany
* Guidance for 2018 confirmed
Stuttgart, 9 May 2018 - The GFT Group published its results for the first
quarter of 2018 today. There was increased demand for projects based on new
technologies, such as distributed ledger technologies, cloud, data analytics
and artificial intelligence, in the first quarter of 2018. As a result, the
GFT Group achieved quarter-on-quarter revenue growth of 5 percent to EUR
106.99 million and almost doubled earnings (EBITDA) to EUR 10.05 million.
Compared to the strong first quarter of 2017 - which at the time was not yet
impacted by the budget restrictions of two investment banking clients -
revenue in the first quarter of 2018 was down by just 4 percent, while
EBITDA rose by 1 percent. "This positive trend for the GFT Group was helped
in particular by the fundamental realignment of the Americas & UK division.
By significantly expanding its focus on technology, the division succeeded
in winning new clients in the UK and the USA," says Marika Lulay, CEO of GFT
Technologies SE. The restructuring measures completed in 2017 led to a
strong improvement in earnings for the Americas & UK division. "Our strict
focus on new technologies that are crucial for our clients in both the
financial services sector and in industry, has enabled us to harness the
long-term growth opportunities offered by digitalisation," adds Lulay.
Revenue trend
In the first quarter of 2018, the GFT Group generated revenue of EUR 106.99
million; 5 percent more than in the preceding quarter (Q4/2017: EUR 102.29
million). Compared to the strong first quarter of the previous year
(Q1/2017: EUR 111.10 million), revenue remained stable. Despite the positive
trend in the Americas & UK segment, business was still impacted by the
budget restrictions of two investment banking clients. As a result, revenue
in this segment fell 13 percent to EUR 47.90 million (Q1/2017: EUR 54.86
million). Adjusted for the revenue contribution of these two investment
banking clients, the Americas & UK division achieved revenue growth of 2
percent. The division succeeded in significantly expanding its business with
other investment banking clients and attracting new clients. In the
Continental Europe segment, revenue growth of 5 percent to EUR 58.98 million
(Q1/2017: EUR 56.08 million) was mainly driven by demand from retail banks
for digitalisation solutions based on new technologies. There was a
particularly encouraging trend in Germany, with revenue growth of 21 percent
to EUR 15.97 million (Q1/2017: EUR 13.20 million). The main growth drivers
were projects for the fundamental modernisation of core banking systems,
which will enable banks to prepare their existing IT systems for the future
in a cost-effective and highly efficient manner.
Earnings trend
Earnings before interest, taxes, depreciation and amortisation (EBITDA) of
EUR 10.05 million almost doubled compared to the preceding quarter (Q4/2017:
EUR 5.21 million). Compared to the same quarter last year, EBITDA rose by 1
percent (Q1/2017: EUR 9.92 million). Pre-tax earnings (EBT) were on a par
with the previous year at EUR 6.52 million (Q1/2017: EUR 6.63 million). In
the Americas & UK segment, earnings (EBT) rose strongly by EUR 4.18 million
to EUR 1.89 million (Q1/2017: EUR -2.29 million) and thus returned EBT to
positive figures. This trend was aided in particular by significantly
improved capacity utilisation following the realignment in the financial
year 2017. The GFT Group's tax rate in the first quarter of 2018 amounted to
24 percent (Q1/2017: 25 percent). Earnings per share were stable at EUR 0.19
(Q1/2017: EUR 0.19).
Additional key data
As of 31 March 2018, cash and cash equivalents amounted to EUR 78.15 million
and were thus EUR 5.91 million above the year-end figure (31 December 2017:
EUR 72.24 million). Equity of EUR 119.95 million was up EUR 4.63 million (31
December 2017: EUR 115.32 million). The equity ratio as of 31 March 2018
amounted to 33 percent and was thus 2 percentage points higher than at the
end of the past year (31 December 2017: 31 percent).
Headcount
As of 31 March 2018, the GFT Group had a total of 4,735 employees; 2 percent
fewer than at the end of the prior-year quarter (31 March 2017: 4,833).
Compared to the end of 2017, headcount was virtually unchanged (31 December
2017: 4,740). In the Americas & UK segment, headcount as of 31 March 2018
was down 9 percent at 1,169 (31 March 2017: 1,286). This decline resulted
mainly from restructuring measures in the UK and USA, which also impacted
the downstream nearshore development centres in Brazil and Poland. Headcount
in the Continental Europe division as of 31 March 2018 was relatively
constant at 3,447 full-time employees (31 March 2017: 3,425). As a result of
the very strong order position, headcount in Germany rose by 10 percent year
on year to 356 as of 31 March 2018 (31 March 2017: 323).
Outlook 2018
The GFT Group confirms its guidance for the financial year 2018. The company
expects revenue within a range of EUR 400.00 to EUR 420.00 million (2017:
EUR 418.81 million). The realignment of the Americas & UK division in the
past financial year and the absence of various special items are expected to
result in a significant improvement in EBITDA to at least EUR 39.00 million
(2017: EUR 34.31 million) with EBT of EUR 25.00 million (2017: EUR 18.13
million).
In the Continental Europe division, the company expects growth to be
enhanced by new solution offerings in the field of 'exponential banking' and
the renewal of core banking systems. Cross-segment growth drivers include
projects based on distributed ledger technologies, cloud, data analytics and
artificial intelligence. At the same time, the cost-containment measures of
the two largest investment banking clients are expected to continue. "Our
clear target is to generate 25 percent of our consolidated revenue with new
technologies this year," explains Lulay. GFT is now also offering its
technology expertise to companies in the industrial sector in order to
assist their implementation of Internet-of-Things solutions, digitally
realign their outdated processes, and establish modern payment interfaces.
New strategic partnerships, for example with Software AG, as well as highly
promising projects like the blockchain proof-of-concept for supply chain
management in the pharmaceutical industry, have already been launched. "We
will use the current financial year to further expand our client base - both
with banks and insurance firms, as well as with industrial companies. In
2018, we expect initial revenue from industrial clients in the
mid-single-digit million range," says Lulay.
Detailed financial figures can be found in the Investor Relations section of
the GFT website at http://www.gft.com/ir.
About GFT
As an experienced technology partner, GFT Technologies SE (GFT) is committed
to driving the digital transformation of the financial services industry.
Drawing on our extensive knowledge of the sector, we advise the world's
leading financial institutions and develop bespoke IT solutions - from
banking applications and trading systems to the implementation and support
of complete platforms, and the modernisation of core banking systems. Our
global innovation team also develops new business models, focusing on topics
such as blockchain, cloud engineering, artificial intelligence and the
internet of things across all sectors.
Contact:
Andrea Wlcek
Global Head of Communications
GFT Technologies SE
Schelmenwasenstr. 34
70567 Stuttgart, Germany
Phone: +49 711 62042-440
E-mail: [email protected]
www.gft.com
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09.05.2018 Dissemination of a Corporate News, transmitted by DGAP - a
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The issuer is solely responsible for the content of this announcement.
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Language: English
Company: GFT Technologies SE
Schelmenwasenstraße 34
70567 Stuttgart
Germany
Phone: +49 (0)711/62042-0
Fax: +49 (0)711/62042-301
E-mail: [email protected]
Internet: www.gft.com
ISIN: DE0005800601
WKN: 580060
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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