DGAP-News: Netfonds defies stock market turbulences and continues growth in 2018

Netfonds defies stock market turbulences and continues growth in 2018

- Preliminary gross consolidated revenues increase by 9.0 percent to EUR 93.6 million
- Disproportionate increase in net consolidated revenues by 23.2 percent to EUR 21.1 million driven by the divisions Technology and Regulatory
- Significant expansion of assets under administration despite adverse stock market environment
- High investments in the new IT platform finfire made from the current cash flow

Hamburg, 26 March 2019 - Netfonds AG (ISIN: DE000A1MME74) a leading platform for administration, advisory, transaction processing and regulation for the financial industry, has successfully completed the 2018 financial year on the basis of the preliminary unaudited financial results in line with the published forecast and has continued its dynamic growth. Despite the adverse stock market environment, the company grew as planned in all areas, successfully completing important milestones on the way to the full launch of the finfire digital consulting and execution technology platform.

Accordingly, gross consolidated revenues increased by 9.0 percent to EUR 93.6 million (FY 2017: EUR 86.0 million). Net consolidated revenues increased by 23.2 percent to 21.1 percent (FY 2017: EUR 17.1 million). At 22.5 percent, the gross profit margin, meaning net consolidated sales in relation to gross consolidated sales, was well above the target of 19 percent. As expected, EBITDA was down on the previous year at EUR 1.1 million due to the massive increase in investment in the digital platform finfire (FY 2017: EUR 2.6 million). Adjusted for one-time IT investments, the aEBITDA increased to EUR 3.1 million.

"In the fourth quarter, as planned, we continued to grow year-on-year, bucking the general trend on the capital markets with the development of assets managed through our platform," says Karsten Dümmler, CEO of Netfonds AG. "The Netfonds Group can thus combine growth and positive results for the eleventh year in a row."

The most important key figures on the basis of preliminary figures 2018 were as follows:

Once again, the two growth segments "Regulatory" and "Technology" made above-average contributions to the Group's overall growth. Above all, demand in the area of ​​liability roofs noticeably continued to rise in the second half of the year. At the same time, demand for the high-margin finfire services in asset management and portfolio management as well as insurance business increased. "Due to the high investments that we made in finfire in 2018 and which will remain at a consistently high level in 2019, our result does not yet show at first glance how highly scalable our business will be in the future," continues Karsten Dümmler continues. "A look at the aEBITDA and the purely operational key figures for the generated volumes of the individual areas reveals, however, where the journey will go from the complete launch of all blocks of the platform, through the normalization of IT costs and the then dynamic scalability of the business model. "

In detail, preliminary gross consolidated revenues by segment in 2018 developed as follows:

For the current financial year 2019, the Management Board expects organic growth of around 12 to 18 percent and thus gross consolidated revenues of between EUR 105 and 110 million. Net consolidated revenues are expected within the range of EUR 23.0 and 24.5 million. For EBITDA, the Management Board expects a target value of between EUR 1.8 and 2.3 million. With the full roll out of the finfire platform later this year, Netfonds is expanding its business model to include the area of "Software as a Service" provider for banks, insurance and financial distributors. In addition, Netfonds sees opportunities in the market to further grow also inorganically through the acquisition of companies or parts of companies.

The complete annual report 2018 will be published by the company on May 24, 2019. Further information on the Netfonds Group and its affiliated subsidiaries can be found at www.netfonds.de.

Contact
Ingo Middelmenne
Head of Investor Relations
Netfonds AG
Heidenkampsweg 73
20097 Hamburg
Mobile: +49 - 174 - 90 911 90
Phone: +49 - 40 - 822 267 355
Email: imiddelmenne@netfonds.de

About the Netfonds Group

The Netfonds Group is a leading platform for administration, advisory, transaction processing and regulation for the German financial industry. Under the finfire brand, the company provides its customers with a web-based technology platform that enables financial industry users to fully, safely, and above all fully compliant with the relevant MiFID II requirements in financial market transactions. The offer is tailor-made for a wide variety of day-to-day business requirements, from fund management companies, asset managers and financial advisors to specialist banks and insurance companies. Customers of Netfonds thus benefit from the most modern software solution on the market, which simplifies the advisory process, makes it secure and enables target group-specific product marketing. With a total of 165 employees, in 2017 the company generated gross consolidated sales of EUR 86 million and net sales of EUR 17.1 million. The shares of Netfonds AG are listed in the m:access of the Munich Stock Exchange and can be traded via XETRA.