Corporate | 13 May 2008 07:01
HCI Capital AG / Quarter Results
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
----------------------------------------------------------------------
HCI Capital’s Sales Up By Nearly 11% in Q1 2008
• Equity placement reaches €153.7 million
• Strong performance in Structured Products and Real Estate segments drives
rigorous implementation of product diversification
• Earnings influenced by changes in product mix and lower other operating
income
• Goals for fiscal year 2008 confirmed based on strong placement results
and full product pipeline
(Hamburg, May 13, 2008) –HCI Capital AG, one of the leading
non-bank-affiliated issuing houses for closed-end funds and structured
products, significantly increased its sales in the first three months of
2008. With placed equity of €153.7 million, the Group exceeded last year’s
Q1 figure (€139.0 million) by 10.6%. Real Estate and Structured Products
made the strongest contributions to growth in Q1 2008, as the HCI Group’s
targeted diversification strategy increasingly bears fruit. These results
also reflect the strength of the HCI Group’s placement results.
Because the HCI Group’s revenues from Real Estate products depend more on
how the investments ultimately perform than other investments offered,
these products produce less income when they are initially sold, and thus
the period saw lower revenues than the first quarter of last year, which
was largely dominated by strong sales in Shipping.
Consolidated revenues in Q1 fell by 16.7% to €26.5 million (Q1 2007: €31.8
million). The HCI Group’s earnings were markedly lower than in Q1 2007.
This resulted not only from the decrease in revenues, but also from the
decline in other operating income from €4.8 million to €1.0 million,
because as planned, no earnings were generated in Q1 from brokering ships
and real estate. Consolidated earnings before interest and taxes (EBIT)
amounted to €3.0 million (Q1 2007: €12.2 million). Earnings after taxes
were also influenced by the decline in interest income, and amounted to
€1.2 million, following €9.9 million in the same period last year.
Strong Growth with Innovative Products
The strong Q1 placement results – which were especially strong given the
current environment – were primarily generated with new, innovative
products, particularly Structured Products and Real Estate Funds of Funds.
These products are characterized by lower commissions at the beginning of
the investment, but the Real Estate Funds of Funds have an earnings
component over the term of the funds that depends on the performance of the
investments. Since its IPO three years ago, the HCI Group has consistently
pursued its strategy of steady income so as not to be dependent on economic
fluctuations in the industry and the individual markets. The change in
product mix is consistent with this strategy.
Sales growth in the first quarter is primarily attributable to successful
placements in the Real Estate and Structured Products segments. This more
than offset the lower placement results in the Secondary Life Insurance
Market and Private Equity Funds of Funds.
Equity of €81.3 million was placed in the Shipping segment from January
through March 2008, a 4.7% increase over the prior year (€77.6 million).
Structured Products such as HSC Shipping Protect I and II and HSC
Frachtraten Zertifikat III, which commenced at the beginning of the period,
have now become well established.
Growth in the Closed-End Real Estate Fund segment was particularly robust.
The placement result nearly tripled during the first three months, to reach
€33.1 million (Q1 2007: €12.3 million), primarily due to the successful
placement of HCI Real Estate BRIC+.
Equity placed in the Secondary Life Insurance Market segment, which
amounted to €37.7 million, was - as expected - lower than last year’s Q1
figure of €46.1 million, but was fully in line with our plans.
The continuing uncertainties on the financial markets resulted in an
expected decrease in placed equity in the Private Equity Fund of Funds
product segment, to €1.6 million (Q1 2007: €3.0 million).
Outlook for the Entire Year 2008
Based on our well-filled pipeline and strong ongoing placement results, the
HCI Group’s target of €880 million in placed equity for 2008 remains
unchanged (2007: €811 million). The Management Board also confirms the
target of improving consolidated net income for 2008 to €33 million (2007:
€30.6 million). In this connection it is important to note that the
marketing of important high-commission, high-margin products is not
scheduled to begin until the third quarter (in particular, more closed-end
shipping funds and for the first time, aircraft funds and the new product
HCI Deepsea Oil Explorer). Given this situation, earnings are expected to
improve significantly in the second half of the year.
'HCI’s sales got off to a strong start in 2008,' said Wolfgang Essing,
Chairman of the Management Board of HCI Capital AG. 'We are very satisfied
with the placement result achieved in the first quarter. It shows that our
strategy of expanding our earnings base by diversifying products and
marketing channels is bearing fruit. The revenues and earnings for the
quarter are in line with our expectations. Given the marketing of important
new products that will start in the second half, the figures for the first
three months definitely cannot be projected over the whole year.'
About HCI:
The HCI Group was founded in 1985 and creates closed-end funds and
structured products in shipping, real estate, private equity funds of funds
and the secondary life insurance market, as well as asset creation plans.
As of March 31, 2008, over 107,000 clients have invested EUR 5.34 billion
in 471 issues, with an investment volume totaling EUR 13.53 billion, making
HCI one of the leading non-bank-affiliated issuing houses in Germany. HCI
Capital AG has been listed on the stock exchange since October 2005. It has
been listed on the SDAX since December 19, 2005 and on the Hamburg Regional
Index HASPAX since September 1, 2006.
Press inquiries:
Ingo Pfeil
HCI Capital AG
Head of Public Relations
Tel.: +49 40 88 88 1 236
ingo.pfeil@hci-capital.de
Investor Relations inquiries:
Dr. Olaf Streuer
HCI Capital AG
Head of Investor Relations
Tel.: +49 40 88 88 1 125
olaf.streuer@hci-capital.de
13.05.2008 Financial News transmitted by DGAP
----------------------------------------------------------------------
Language: English
Issuer: HCI Capital AG
Bleichenbrücke 10
20354 Hamburg
Deutschland
Phone: +49 (0)40 88881-0
Fax: +49 (0)40 88881-109
E-mail: ir@hci-capital.de
Internet: www.hci-capital.de
ISIN: DE000A0D9Y97
WKN: A0D9Y9
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in Berlin, Hannover, Stuttgart, München,
Düsseldorf
End of News DGAP News-Service
---------------------------------------------------------------------------