DGAP-News: vwd group confirms guidance for 2012
(firmenpresse) - DGAP-News: vwd Vereinigte Wirtschaftsdienste AG / Key word(s): Half
Year Results
vwd group confirms guidance for 2012
09.08.2012 / 07:42
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vwd group confirms guidance for 2012
-vwd AG/interim results/outlook-
- Growth trend bolstered
- Higher material expenses resulting from new business in Italy
- Economies of scale in HR already tapped
- EBITDA maintained in the first half of year
Frankfurt am Main, August 9, 2012 - vwd Vereinigte Wirtschaftsdienste AG, a
leading provider of financial information in Europe, reports the following
financial results for the first half of 2012:
Key financial figures:
in EUR '000 Q2 2012 Q2 2011 1st half 2012 1st half 2011Strong growth in sales
Sales 22,720 18,687 44,098 36,952
EBITDA 2,002 2,382 4,010 4,026
EBIT 706 1,358 1,448 1,954
Net income -27 762 164 913
Earnings per share in
EUR -0.008 0.026 -0.003 0.029
In the second quarter of 2012, the vwd group experienced a further surge in
business that began to emerge at the start of the year. After generating a
quarterly sales record of EUR 21,378.1 thousand in the first quarter of
2012, the company boosted its sales even higher in the second quarter,
reaching a total of EUR 22,719.5 thousand. Compared with results produced
in the second quarter of 2011 (EUR 18,687.2 thousand), this represented a
rise of 21.6 %. In addition to new solutions designed to support a
standardized investment process, this growth was fueled once again by the
business activities in Italy that were initiated in 2011. In the first half
of 2012, the vwd group generated sales of EUR 44,098 thousand. Compared
with the previous year's total of EUR 36,952 thousand, this represented a
rise of 19.3 %.
Earnings hurt in second quarter by additional costs
The earnings of the vwd group were hurt by increases in transmission costs,
information procurement costs, fees for downloading exchange data and other
sales-related costs arising from the company's entry into the Italian
market. These factors had a much bigger impact in the second quarter than
they did in the first. The company's share of material expenses illustrates
this trend in particular. This metric climbed to 40.3 % in the second
quarter of 2012 (first quarter of 2012: 37.2 %; second quarter of 2011:
33.6 %). Two other factors were other operating income and expenses, and
internally produced and capitalized assets. The total of other operating
income and expenses in relation to sales rose to 11.5 % year on year in the
second quarter of 2012 (second quarter of 2011: 10.7 %). Internally
produced and capitalized assets fell to EUR 150 thousand (second quarter of
2011: EUR 285 thousand). These negative trends could not be offset by
positive economies of scale related to personnel expenses. The share of
these expenses in relation to sales fell to 40.0 % (second quarter of 2011:
44.5 %). As a result of these factors, earnings before interest, taxes,
depreciation and amortization (EBITDA) dropped by 15.9 % to EUR 2,002.1
thousand in the second quarter of 2012 (second quarter of 2011: EUR 2,381.5
thousand).
In the quarter under review, depreciation, amortization and impairment of
tangible and intangible assets totaled EUR 1,296.1 thousand (second quarter
of 2011: EUR 1,023.7 thousand). In particular, this figure includes
depreciation, amortization and impairment regarding purchase-price
allocations related to companies acquired in the past. As a result, EBIT
dropped by 48.0 % during the second quarter, from EUR 1,357.8 thousand to
EUR 706.0 thousand. The fictional interest arising from the put option to
acquire the remaining shares of the EDG business group fell to EUR 254.0
thousand (second quarter of 2011: EUR 286.3 thousand). With a slight
improvement in the interest result to minus EUR 115.2 thousand (second
quarter of 2011: minus EUR 122.6 thousand), the result from ordinary
business operations totaled EUR 336.8 thousand (second quarter of 2011: EUR
948.9 thousand).
A net loss for the period totaling EUR 206.2 thousand was recorded in the
second quarter of 2012 (second quarter of 2011: net income of EUR 650.1
thousand) in the wake of lower income taxes and considerably decreased
deferred tax receivables as well as due to the share allocable to minority
interests. Earnings per share for the quarter under review were minus EUR
0.008, compared with EUR 0.026 in the same period last year.
EBITDA largely maintained in the first half of the year
In the first half of 2012, internally produced and capitalized assets
climbed to EUR 473.9 thousand (first half of 2011: EUR 301.6 thousand) due
to a surge in the first quarter. These assets also fueled a rise in total
sales, which rose by 19.6 % to EUR 44,571.5 thousand (first half of 2011:
EUR 37,254.0 thousand), a rate that was somewhat higher than sales growth.
In the second quarter of 2012, the increase of total sales was 1 percentage
point below the rate of sales growth. This factor and the impact of the
significantly higher share of material expenses during the first half of
2012 hurt earnings in the second quarter of 2012, a development that
offsets the positive trend seen in the first quarter. Other operating
expenses rose by 23.4 % to EUR 6,228 thousand (first half of 2011: EUR
5,047 thousand) largely due to expenses related to the measurement of the
EDG put option. Earnings before interest, taxes, depreciation and
amortization (EBITDA) were virtually unchanged at EUR 4,009.6 thousand
(first half of 2011: EUR 4,025.7 thousand). The EBITDA margin was 9.1 %
(first half of 2011: 10.8 %).
Depreciation, amortization and impairment of tangible and intangible assets
rose during the first half of 2012 by 23.6 % to EUR 2,561.2 thousand (first
half of 2011: EUR 2,072.1 thousand). The main reason for this increase was
the initial purchase-price allocation of vwd group Italia. Depreciation,
amortization and impairments related to the purchase-price allocation
totaled EUR 1,098 thousand (first half of 2011: EUR 926 thousand).
Partially as a result of this increase, earnings before interest and taxes
(EBIT) fell in the first half of 2012 by 25.9 % to EUR 1,448 thousand
(first half of 2011: EUR 1,953.6 thousand). The EBIT margin was 3.2 %
(first half of 2011: 5.2 %).
In the first half of 2012, earnings before taxes (EBT) decreased by 40.7 %
to EUR 743.5 thousand (first half of 2011: EUR 1,253.9 thousand) while the
fictional interest expense related to the put option to acquire the
remaining shares in the EDG business group remained largely unchanged.
After taxes and minority interests, the net income or loss for the period
was minus EUR 65.4 thousand compared with plus EUR 757.1 thousand in the
same period last year. As a result, earnings per share totaled minus EUR
0.003 in the first half of 2012 compared with plus EUR 0.029 in the
previous year.
The following section describes business developments in the company's
individual segments during the reporting period:
Segment Market Data Solutions (MDS)
The MDS segment comprises the vwd group's activities in the areas of
market-data systems, browser-based applications, market-data feeds and
comprehensive portfolio-management solutions for banks, savingsbanks,
asset managers, family offices, foundations and companies. Following a
surge of 29.1 % in the first quarter of 2012, sales picked even more
momentum in the three-month period that ended in June. As a result, the
segment's sales shot up 35.3 % to EUR 23,573 thousand in the first half of
2012 (first half of 2011: EUR 17,421 thousand). The biggest driver of sales
during the entire period under review was activities in Italy, which
continued to develop as planned. Key product-related developments included
the sales of vwd market manager financials and the business conducted with
market-data feeds. Business with private customers was rather lethargic due
to the continued uncertainties on stock markets. Largely as a result of the
integration of the Italian business and continued increases in fees charged
for downloading exchange data, material expenses rose disproportionally to
sales. By contrast, positive cost-lowering effects were generated in human
resources. As a result, EBITDA in the MDS segment climbed by 22.8 % to EUR
2,316.7 thousand (first half of 2011: EUR 1,886.2 thousand).
Segment Technology Solutions (TS)
The TS segment, which, among other things, processes customer-specific
financial-market information across various media and offers it as a
technology-based outsourcing process, boosted sales by 14.5 % to EUR 10,474
thousand in the period under review (first half of 2011: EUR 9,151
thousand). As the segment's business with current customers remained
stable, the new business was fueled in particular by newly acquired
projects and rising demand for solutions related to the structured, legally
compliant sale of financial products. In Switzerland, the business-process
outsourcing services for asset managers and family offices generated
further growth. In addition, the activities performed by the segment in
Italy were included for the first time. The Transaction Solutions product
group lagged behind its previous year's level due to trends on stock
markets. Thanks to favorable developments related to personnel expenses,
EBITDA in the TS segment jumped by 15.6 % to EUR 1,218 thousand (first half
of 2011: EUR 1,054 thousand).
Specialised Market Solutions (SMS)
The SMS segment, a specialist in dissemination and marketing concepts for
issuers of securities, saw its sales dip by 3.2 % to EUR 10,051 thousand in
the period under review (first half of 2011: EUR 10,380 thousand) as key
business trends moved in opposite directions. The chief reason for the
decrease was the reduced advertising income generated by the financial
portal finanztreff.de. This decrease could not be offset by the good
performance of certificate ratings and value-at-risk calculations.
Highlights of the business conducted by vwd listing services were a
contract extension with a major German newspaper publisher and the
acquisition of two new customers in Austria. At the same time, the share of
material expenses rose sharply in the segment, causing the segment's EBITDA
to fall by 56.3 % to EUR 475 thousand (first half of 2011: EUR 1,086
thousand).
Sales guidance for 2012
The company is maintaining the guidance it announced for fiscal year 2012
in spite of the difficult conditions it is facing in the financial
industry. The vwd group expects consolidated sales to a level between EUR
87.0 million and EUR 96.0 million. EBITDA will likely total between EUR 9.6
million and EUR 10.5 million. In contrast to 2011, the vwd group expects to
see an increase resulting from cost-structure improvements that should be
made in particular by tapping synergies in the Italian business.
Forward-looking statements/disclaimer
This press release contains forward-looking statements that reflect the
present views, expectations and assumptions of the vwd group and are based
on information available to the company at the time this press release was
prepared. Forward-looking statements are no guarantee that future events
and developments will actually occur. Rather, they are associated with
risks and uncertainties. Future performance by and developments at the vwd
groupcould differ materially from the expectations and assumptions
provided here as a result of many factors. In particular, these factors
include changes in economic conditions, new legal parameters, competition
and trends in financial markets.
The Half-Year Financial Report 2012 is now available for download on vwd's
home page at http://www.vwd.com/vwd/investor_relations.htm.
Further information:
Investor Relations
Carsten Scharf
Telephone: +49 69 50701-270
Fax: +49 69 50701-114
E-mail: investorrelations(at)vwd.com
vwd Vereinigte Wirtschaftsdienste AG
Tilsiter Straße 1
60487 Frankfurt am Main
www.vwd.com
About vwd group:
vwd group offers customized information, communications and technology
solutions for the financial markets. As a leading European provider, it
specializes in meeting individual customer requirements in the areas of
asset management, retail banking, private banking and wealth management. It
offers innovative solutions for financial service providers, investors and
the media. vwd's business is driven by innovation, flexibility, customer
centricity and strong commitment to local needs. With around 470 employees
at 18 locations in 5 countries vwd is a public company, listed on the
Frankfurt Stock Exchange (ISIN DE0005204705). The group's best-known brands
are: finanztreff.de, vwd fonds service, vwd market manager, vwd portfolio
manager, vwd PortfolioNet, TradeLink and Tai-Pan.
End of Corporate News
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09.08.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: vwd Vereinigte Wirtschaftsdienste AG
Tilsiter Straße 1
60487 Frankfurt am Main
Germany
Phone: +49 (0)69 50701-316
Fax: +49 (0)69 50701-114
E-mail: cscharf(at)vwd.com
Internet: http://www.vwd.com
ISIN: DE0005204705
WKN: 520470
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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181007 09.08.2012
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Datum: 09.08.2012 - 07:42 Uhr
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