Intertrust reports Q3 2018 results

• Revenue increased 2.6% underlying year-on-year to EUR 121.8 million (Q3 2017: EUR 118.1 million).
• Adjusted EBITA decreased 1.4% underlying to EUR 45.9 million (Q3 2017: 46.3 million) resulting in adjusted EBITA margin of 37.7% (Q3 2017: 39.2%) primarily related to a one-off release from the LTIP accrual (EUR 1.3 million) in Q3 2017.
• Adjusted EPS decreased to EUR 0.39 (Q3 2017: EUR 0.40) due to lower adjusted EBITA and higher tax expenses as a result of one-off credits in Q3 2017.
• The global headcount realignment programme as announced in Q2 2018 has been completed with the remainder of the costs (EUR 3.5 million) included as one-off integration and transformation costs in Q3 2018.

9M 2018 Highlights

• Revenue increased 3.6% underlying year-on-year to EUR 363.4 million (9M 2017: EUR 357.8 million).
• Adjusted EBITA increased 3.5% underlying to EUR 135.8 million (9M 2017: EUR 134.2 million).
• Adjusted EBITA margin of 37.4% (9M 2017: 37.5%).
• Adjusted EPS increased to EUR 1.13 (9M 2017: EUR 1.11).
• Revenue growth, adjusted EBITA margin and effective tax rate (18.0%) in line with guidance.
• Guidance for full year 2018 reiterated.

Stephanie Miller, CEO of Intertrust, commented:

"The third quarter delivered in line with our expectations against challenging market conditions in certain jurisdictions and a strong third quarter last year which was positively impacted by one-off items. We saw double-digit growth in  Luxembourg on the back of excellent performance in Funds, one of our strategic focus areas. Also Rest of the World again performed strongly driven by Corporate and Fund services. This was partially offset by the Netherlands as a result of regulatory uncertainties, and by Jersey as a result of a continued effect of last quarter's insourcing in Private Wealth. 

"Our first nine months demonstrated that we are on track to deliver on our 2018 guidance. We are making good progress in executing our strategy to become a tech-enabled corporate and fund solutions provider. We have started the search for a shared services location to drive operational excellence and will take a decision on the location before the end of the first quarter 2019. Following the expansion in the United Arab Emirates and into Australia, we continue to work on our strategic initiatives. One of them being our client portal and I am happy to see this is on track to go live early 2019. Our increased specialised sales capabilities in the US and UK, supported by successful client events, are expected to support growing our business specifically in Funds and Capital Markets."