Corporate | 17 September 2015 07:00
DGAP-News: JDC Group AG / Key word(s): Half Year Results
2015-09-17 / 07:00
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- JDC Group posts sharp improvement in key figures and concludes first
half with seven-digit EBITDA
- Revenues increased by 7 percent, earnings improve by Euro 2 million
- New AdvisorTech business field launched
JDC Group AG, a leading financial service provider in German-speaking
countries, generated revenues of Euro 37.0 million in the first half of
2015 (previous year: Euro 34.5 million). The company also posted a sharp
improvement in its EBIT and EBITDA.
Now that its new "Advisor Technology" ("AdvisorTech") business field has
been launched, JDC Group AG will be focusing in future on its "Advisory"
and "AdvisorTech" segments. Financial product brokerage via financial
intermediaries (Jung, DMS & Cie. broker pool and FiNUM Group) is pooled in
the "Advisory" segment. In its "AdvisorTech" segment, JDC Group is
developing "state-of-the-art advisory and administration technologies for
customers and advisors".
The traditional Advisory business defied the industry trend in the first
half of 2015 and posted a very strong performance.
Excluding revenues from compexx Finanz AG, which was sold in 2014 and still
included in the previous year's figures for five months, revenues grew
year-on-year by 7.2 percent to Euro 37.0 million (previous year: Euro 34.5
million). Earnings before interest, taxes, depreciation and amortization
(EBITDA) at continuing operations rose to Euro 1.0 million in the first
half of 2015 (previous year: Euro -0.9 million). Earnings before interest
and taxes (EBIT) at continuing operations also performed very well and
increased to Euro 0.3 million (previous year: Euro -1.7 million).
Key balance sheet figures at JDC Group AG also developed positively.
Shareholders' equity fall from Euro 26.4 million at the end of the previous
year to Euro 26.1 million as of June 30, 2015, a development accompanied by
a slight decrease in the equity ratio to 40.0 percent (December 31, 2014:
43.8 percent). Cash and cash equivalents, by contrast, grew to Euro 12.9
million as of June 30, 2015.
Product sales totaled Euro 609 million in the first half of 2015 and - in
defiance of the far weaker market trend - clearly exceeded the equivalent
figure of Euro 589 million for the previous year's period. At Euro 4.4
billion, the investment fund portfolio managed by Aragon AG ("assets under
administration") as of June 30, 2015 was ahead of the previous year's
figure (Euro 4.1 billion).
Performance of Broker Pools segment
The Broker Pools segment generated revenues of Euro 29.4 million in the
first half of 2015, thus exceeding the previous year's figure by 10.1
percent (H1 2014: Euro 26.7 million). At Euro 1.0 million, earnings before
interest, taxes, depreciation and amortization (EBITDA) for the first six
months of 2015 were significantly up on the previous year (H1 2014: Euro
0.3 million). At Euro 0.7 million, earnings before interest and taxes
(EBIT) for the first six months of 2015 were also substantially higher than
in the previous year (H1 2014: Euro -0.1 million).
Performance of Financial Consulting segment
The Financial Consulting segment can also report revenues growth for the
first six months of 2015. Excluding compexx Finanz-Gruppe, which was still
included for five months in the previous year, revenues surged around 20
percent to Euro 10.7 million (H1 2014 (adjusted): Euro 8.9 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) in
this segment improved sharply to Euro 0.6 million in the first six months
of the year (H1 2014 (adjusted): Euro -0.2 million). Earnings before
interest and taxes (EBIT) rose to Euro 0.3 million in the first six months
of 2015 (H1 2014 (adjusted) Euro -0.4 million).
New "AdvisorTech" segment with great opportunities
The digitization megatrend has seized the financial services market. As one
of the last industries, financial services are now discovering the enormous
potential harbored by the internet and its (new) business models. While
customer acquisition costs are actually so high as to pose a threat to the
very existence of most fintech companies, JDC has more than 900,000
customers and 16,000 affiliated brokers and is thus in a superior position
when it comes to launching new technological developments into the market.
In its new "AdvisorTech" business segment, the JDC Group now aims to
rapidly develop state-of-the-art applications and tools aimed at
simplifying the advisory and administrative input for brokers, advisors and
customers alike. Smart links to brokers' tools will create a hybrid model -
technology plus advice - that as an overall package is far superior to the
service offered by other fintech players.
"Driven by impressive key figures, with our "AdvisorTech" segment we aim to
rapidly position ourselves among Europe's leading fintech players. 2015
will still be a year of transition and investment in technology, one in
which we only expect to achieve slight profitability. From 2016 onwards,
however, the JDC Group expects to generate substantial earnings growth. For
2016, we can confirm our expectations, namely of generating revenues of
between Euro 90 million and Euro 100 million and EBITDA of at least Euro 5
million," commented Ralph Konrad, CFO of JDC Group AG.
The interim report for the first half of 2015 is now available at
www.jdcgroup.de.
About JDC Group AG
JDC Group AG (ISIN: DE000A0B9N37) stands for smart financial sales flanked
by new advisory technologies in the age of the digital natives.
In our "Advisory" segment, our Jung, DMS & Cie. and FiNUM subsidiaries
broker financial products to private end customers via independent
advisors, brokers and financial sales operations. With more than 16,000
affiliated sales partners, more than 900,000 end customers, a managed
portfolio of more than Euro 4 billion and new business of more than Euro 1
billion a year, we are one of the market leaders in German-speaking
countries.
In our "AdvisorTech" segment, we are developing state-of-the-art advisory
and administration technologies for customers and advisors alike. Many
sales operations and partners view technological change as presenting a
problem and see young fintech players as new competitors. We, by contrast,
see the "technology" factor as offering a great opportunity. In future,
solutions from the "AdvisorTech" segment will help advisors support their
customers even more closely and thus also generate higher sales.
Further information about the company and its subsidiaries can be found at
www.jdcgroup.de.
Disclaimer:
Members of the Management Board of JDC Group AG hold material shareholdings
in JDC Group AG and thus have proprietary interests in the nature and
contents of the information provided in this notification.
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