JDC on a clear growth trajectory in the second quarter of 2023

 

JDC Group AG (ISIN DE000A0B9N37) today published figures for the first half of 2023, showing significant growth and an accompanying increase in revenues and profits despite the persistently low consumer confidence:

Against the backdrop of a difficult market environment, revenues in the second quarter increase by 8.0 percent to EUR 40.8 million (Q2 2022: EUR 37.8 million). As a result, revenues in the first half of 2023 are up 4.5 percent to EUR 84.6 million (1 HY 2022: EUR 81.0 million).

Despite the energy, inflation and interest rate crises, the Advisortech segment shows that even this multi-crisis environment can be overcome. Despite continued restraint in new business in the investment and construction finance business, the platform sector is showing a very positive development thanks to increased recurring revenues from portfolio transfers: Revenues of the Advisortech sector increase in the second quarter by almost 17 percent to EUR 35.6 million. For the first half of the year, this translates into growth of 11.2 percent to EUR 75.0 million.

The consulting business is still lagging behind this return to significant growth: In the Advisory segment, revenues in the first half of 2023 are EUR 15.9 million, which is almost 12 percent below the previous year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) of the JDC Group increase by around 15 percent to EUR 1.9 million in the second quarter (Q2 2022: EUR 1.7 million) - in the Advisortech segment by as much as 37% to EUR 2.2 million. In the first half of the year, this still represents a small decline of around 6 percent to EUR 5.1 million (H1 2022: EUR 5.4 million).

Earnings before interest and taxes (EBIT) decrease minimally by 2.5 percent to EUR 2.3 million(H1 2022: EUR 2.4 million). Consolidated net income in the first half of 2023 increased by 2.7 percent to EUR 1.63 million, compared to EUR 1.58 million in the same period of the previous year.

The JDC Group companies achieved further successes in the second quarter:

The important milestone for JDC of an insurance portfolio with an annual net premium of more than one billion euros per year was already reached in the second quarter of 2023 and thus earlier than expected. Surpassing this mark once again underlines the performance of the platform and, with the high recurring revenues, sets a solid basis for the further growth of the JDC Group.

“Summitas", the aggregator for the German and Austrian commercial brokerage market founded as a joint venture with Bain Capital and Canada Life at the end of 2022, was able to announce its first acquisition at the end of the second quarter. The purchase of 100 percent of the shares in MVM Münchener Versicherungsmakler is the first step in a successful buy-and-build strategy. As with further acquisitions, JDC will provide Summitas with its platform for handling this business, thus securing long-term revenue streams.

JDC Group AG has published a group-wide sustainability report for 2022 for the first time. In this report, JDC Group clarifies its sustainability strategy for the future. In order to list the most important topics transparently, the JDC Group has based this report on the declaration of the German Sustainability Code, the framework of the CSR guideline and the standards of the Global Reporting Initiative (GRI). Through compensation services, the entire JDC Group is already operating completely carbon-neutral as early soon as 2022.

“The Advisortech segment showed a brilliant rebound in the second quarter with growth of around 17% in revenues and around 35% in EBITDA, exceeding our already high expectations. So, the engine of the JDC Group is running. The Advisory division is still struggling with the after-effects of the crisis environment, but here the signs for the second half of the year are clearly pointing to recovery." comments Ralph Konrad, CFO/COO of JDC Group on the quarterly figures. "We were able to reach the important mark of 1 billion annual net premiums in the insurance portfolio faster than it was foreseeable at the beginning of the year. We can confirm our guidance based on this development despite a weak Q1."

"Yes, in the platform business we are back on track to grow by more than 20 percent, as the current new business and portfolio transfer figures show. But the advisory business will also grow again in the second half of the year, if only because 2022 figures are a low benchmark." adds Dr. Sebastian Grabmaier, CEO of JDC Group. "We will also succeed in further driving the bancassurance business and winning more major customers. But even beyond the figures, I am pleased to show with our ESG-report that the JDC share is also an extremely attractive investment from an environmental, social or governance point of view. These are factors that are becoming increasingly important, especially for our institutional shareholders." 

The key figures for the first half and the second quarter of 2023 are as follows:

At a glance
in kEUR
			Q2 2023	Q2 2022	Change	HY1 2023	HY1 2022	Change
			kEUR	kEUR	in %	kEUR	kEUR	in %
Revenues			40,779	37,769	8.0%	84,611	80,993	4.5%
thereof Advisortech			35,560	30,409	16.9%	75,005	67,459	11.2%
thereof Advisory			7,766	9,046	-14.1%	15,922	18,141	-12.2%
thereof Holding/Cons.			-2,547	-1,686	-51.1%	-6,316	-4,607	-37.1%
EBITDA			1,903	1,661	14.6%	5,087	5,393	-5.7%
EBIT			533	123	>100%	2,340	2,400	-2.5%
EBT			202	-253	>100%	1,655	1,654	0.1%
Net profit			193	-263	>100%	1,626	1,583	2.7%

  On the basis of cooperation-contracts already signed, we confirm our positive assessment and continue to expect revenues to grow to EUR 175 to 190 million and an EBITDA of EUR 11.5 to 13 million for the full year 2023.

Under the following link interested investors can register and participate in the Earnings Call of JDC Group which will take place today at 14:00:
Montega CONNECT: JDC Group Aktiengesellschaft - Earnings Call HY1 2023

The 2023 half-year report and further information on JDC Group AG can be found at www.jdcgroup.de.

About JDC Group AG

JDC Group AG (ISIN: DE000A0B9N37) offers a digital platform for insurance, investment funds and all other financial products and services under the brands Jung, DMS & Cie, allesmeins and Geld.de. By offering and handling all product providers in the financial market with a complete product range and full data and document supply, it creates the perfect workplace for financial intermediaries of all kinds (brokers, agents, corporate brokers, banks, tied agents, fintechs) via its applications and interfaces, and the first true financial home for financial services customers. Via smartphone app, tablet or PC, customers and intermediaries receive a complete overview of the individual insurance and fund portfolio, simple closing routes and transfer options, and also a complete market comparison, so that customers and advisors can optimize the risk and pension portfolio easily and with an ideal benefit-cost ratio. Around 250 well-trained advisors under the FiNUM brand complement the platform offering for affluent and upscale private customers. With more than 16,000 connected platform users, around 1.6 million customers, annual sales of around two billion euros in valuation, a fund portfolio of approx. 5 billion euros and annual insurance premiums of 1 billion euros, we are one of the market leaders in German-speaking countries. JDC focuses on sustainability and is committed to ESG criteria: As a digitization service provider, JDC helps to save many tons of paper and makes the daily life of financial intermediaries and customers easier.

 

Disclaimer:

The board members of JDC Group AG, Dr. Sebastian Grabmaier and Ralph Konrad, are holding a stake in JDC Group AG and have a vested interest in the nature and content of the information provided in this release.

Contact:
JDC Group AG

Ralf Funke
Investor Relations
Phone: +49 611 335322-00
Email: [email protected]