DGAP-News: vwd group revises guidance for 2013
(firmenpresse) - DGAP-News: vwd Vereinigte Wirtschaftsdienste Aktiengesellschaft / Key
word(s): Half Year Results
vwd group revises guidance for 2013
08.08.2013 / 13:15
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vwd group revises guidance for 2013
vwd AG/six-month results/outlook
- Challenging business conditions in Italy, hesitancy regarding
investments and advertising
- Share of material expenses improves
- Personnel expenses falling steeply in 2013
- EBITDA climbing sharply as year progresses
Frankfurt am Main, August 8, 2013 - vwd Vereinigte Wirtschaftsdienste AG,
one of the leading providers of financial information in Europe, announces
the following financial results for the first half of 2013:
Key financial figures:
in EUR '000 Q2 2013 Q2 2012 1st HY 2013 1st HY 2012Industry's weakness slowing company's sales
Sales 20,160 22,720 40,492 44,098
EBITDA 1,794 2,002 2,426 4,010
EBIT -318 706 -973 1.448
Net income -807 -27 -2,085 164
Earnings per share (EUR) -0.030 -0.008 -0.083 -0.003
The continuing problems faced by the financial industry hurt the
performance of the vwd group in the second quarter of 2013, with sales
totaling EUR 20,160 thousand during this period. Compared with the total of
EUR 22,720 thousand produced in the second quarter of 2012, this represents
a decrease of 11.3 %. Sales fell by 4.9 % in the first quarter of 2013. In
the first six months of 2013, the vwd group generated total sales of EUR
40,492 thousand. Compared with the same period last year, when the company
produced sales of EUR 44,097 thousand, this represents a drop of 8.2 %. The
main reasons for this decrease were business difficulties in Italy and the
hesitancy of the financial industry to make investments and spend money on
advertising.
Second quarter earnings helped by cost cutting
While sales fell, the company managed to significantly lower its costs. In
the second quarter of 2013, expenses related to information procurement,
transmission costs and fees for downloading exchange data decreased at a
steeper rate than sales did compared with the previous year. As a result,
the share of material expenses for the second quarter fell to 37.1 % (first
quarter of 2013: 38.0 %; second quarter of 2012: 40.3 %). This improvement
was the direct result of the company's cost-cutting program. In relation to
sales, other operating expenses in the second quarter of 2013 rose to 18.0
% (first quarter of 2013: 14.6 %; second quarter of 2012: 14.3 %). It was
also possible to lower personnel expenses, which fell to 46.6 % in relation
to sales during the second quarter of 2013. In the first quarter of 2013,
the share of personnel expenses totaled 52.7% as a result of changes in
management. In the second quarter of 2012, however, this metric totaled
only 40.0 %. Against this backdrop, earnings before interest, taxes,
depreciation and amortization (EBITDA) fell by 8.9 % in the second quarter
of 2013 to EUR 1,793 thousand (second quarter of 2012: EUR 2,002 thousand).
Six-month EBITDA well below previous year's level
Largely due to an increase in other operating income totaling EUR 3,076
thousand (first half of 2012: EUR 1,032 thousand) that resulted from the
end of legal disputes and the reversal of provisions related to changes in
management, the group's total sales amounted to EUR 43,758 thousand in the
first half of 2013, a slight drop of 4.1 % below the previous year's level
despite the decline in sales (first half of 2012: EUR 45,603 thousand).
Other operating expenses decreased only slightly during the first half of
2013. Overall, the decrease in expenses was unable to completely offset the
sales-driven reduction in income. For this reason, EBITDA fell to EUR 2,426
thousand (first half of 2012: EUR 4,010 thousand). As a result, the EBITDA
margin was 6.0 % (first half of 2012: 9.1 %).
During the first half of 2013, depreciation and amortization on intangible
and tangible assets climbed to EUR 3,399.3 thousand (first half of 2012:
EUR 2,561 thousand). The rise resulted largely from the impairment of
goodwill. The company had to take further depreciation charges related to
the purchase-price allocation regarding past acquisitions. For this reason,
earnings before taxes (EBIT) fell much more steeply than EBITDA, totaling
minus EUR 973 thousand (first half of 2012: EUR 1,448 thousand).
Earnings before taxes (EBT) totaled minus EUR 1,599 thousand (first half of
2012: EUR 744 thousand). During the first half of 2013, income taxes
decreased by 3.1 % to EUR 615 thousand (first half of 2012: EUR 634
thousand). After minority interests, the net loss for the period was minus
EUR 2,149 thousand (first half of 2012: minus EUR 65 thousand). Earnings
per share in the first half of 2013 totaled minus EUR 0.083 compared with
minus EUR 0.003 the year before.
The results of the company's segments now follow:
Segment Market Data Solutions (MDS)
The company's business with standardized market-data systems and
portfolio-management solutions for banks, savings banks, asset managers and
companies offered by the MDS Segment saw sales drop as a result of a weak
first quarter. The business with market data for professional users
performed poorly at the beginning of the year, especially in international
markets, and failed to meet expectations. Demand for market data among
private individuals also waned in the first three months of the year
compared with same period in the previous year. By the halfway point in the
year, though, demand had picked up considerably. In the wake of these
trends, the Segment's sales fell by 8.9 % to EUR 21,483 thousand during the
first half of 2013 (first half of 2012: EUR 23,573 thousand). As a result,
sales improved measurably compared with the first quarter of 2013, when
they dropped by 13.6 %. Material expenses in the second quarter fell more
steeply than sales during the second quarter, enabling the higher personnel
expenses arising from extraordinary items to be more than offset. In the
first half of 2013, the MDS Segment generated EBITDA of EUR 2,050 thousand
(first half of 2012: EUR 2,317 thousand). This represents an increase of
21.7 %. In contrast, first-quarter EBITDA was 46.4 % below the previous
year's level.
Segment Technology Solutions (TS)
Demand for customized technology solutions and outsourcing services in the
Technology Solutions Segment was rather negative in the first half of the
year. Transaction-related revenue fell due to a drop in the number of
transactions. The Segment's business involving the preparation of stock
tables for media companies remained stable. Ongoing sales in the service
area dipped only slightly. But its project business declined. During the
six-month period under review, the Segment's overall sales decreased by 3.8
% to EUR 10,080 thousand (first half of 2012: EUR 10,474). Material
expenses declined as a result of sales while personnel expenses rose due to
proportionate assignment of nonrecurring effects. The Segment's EBITDA
plunged by 53.4 % to EUR 580 thousand (first half of 2012: EUR 1,218
thousand).
Specialised Market Solutions (SMS)
With its publication and marketing concepts as well as risk analyses for
financial products, the Specialised Market Solutions Segment was hurt by
the cost-cutting programs being carried out by financial service providers,
efforts that are reflected in massively reduced marketing budgets and brand
activities. The SMS Segment's sales were unsatisfactory as they dropped by
11.2 % to EUR 8,929 thousand (first half of 2012: EUR 10,051 thousand).
Sales generated by special forms of advertising as well as with the
dissemination of financial and price information for financial products
decreased in the first half of 2013. Sales produced by online advertising
fell sharply. In addition, sales with certificate ratings and value-at-risk
assessments fell for the first time, dropping below the previous year's
level. This decline can largely be traced back to the effects of the
difficult situation of the EDG business group in connection with
negotiations regarding the complete takeover of it by the vwd group last
year. While savings were generated in material expenses, the Segment's
personnel expenses rose sharply due to one-time effects. As a result, its
EBITDA fell to minus EUR 204 thousand (first half of 2012: EUR 475
thousand).
Sales guidance for 2013
For the remainder of fiscal year 2013, it can be assumed that the
conditions under which the vwd group conducts its business will remain
unchanged. But it appears certain that new value-creation models will have
to be introduced as part of the ongoing transformation process in the
financial industry. But it cannot be credibly estimated at this point how
quickly the related investment budgets will be approved. The management
team of the vwd group believes it is unlikely that this will occur to any
significant extent this year. For this reason, the Management Board has
adjusted its planning in accordance with the principle of cautious business
practices and lowered its guidance for 2013. Sales should total between EUR
82,000 and EUR 84,000 thousand and EBITDA between EUR 8,000 and EUR 9,000
thousand.
Forward-looking statements:
This press release contains forward-looking statements that reflect the
current views, expectations and assumptions of the vwd group and are based
on the information available to the company at the time of its preparation.
Forward-looking statements cannot guarantee that results and developments
will actually occur in the future, but are subject to risks and
uncertainties. Different factors may cause the future results and
development of the vwd group to deviate substantially from the expectations
and assumptions formulated in this statement. Changes in general economic
conditions, new legal parameters, the competitive situation and financial
market developments, in particular, can impact future results and
performance.
The interim report for 2013 is now available for download at the vwd
group's home page at http://www.vwd.com/vwd/investor_relations.htm.
More information:
vwd Vereinigte Wirtschaftsdienste Aktiengesellschaft
Investor Relations
Carsten Scharf
Telephone: +49 69 50701-270
Fax: +49 69 50701-114
Email: investorrelations(at)vwd.com
Internet: www.vwd.com
About vwd group:
vwd group offers customised information, communications and technology
solutions for the financial markets. As a leading European provider, it
specialises 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 at the
Frankfurt Stock Exchange (ISIN DE0005204705). The group's best-known brands
are: finanztreff.de, vwd fonds service, vwd market manager and vwd
portfolio manager.
End of Corporate News
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08.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: vwd Vereinigte Wirtschaftsdienste Aktiengesellschaft
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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224885 08.08.2013
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