SimCorp reports revenue growth of 23% and EBIT margin of 26% in Q1 2018

Company Announcement no. 07/2018

Q1 2018 highlights:

• Q1 2018 reported revenue was EUR 89.9m, an increase of 23.0% when compared with Q1 2017, and an increase of 28.8% when measured in local currencies. The acquisition of SimCorp Italiana accounted for 10.8%-points of the increase, with underlying organic revenue growth of 18.0%.
  
  
• EBIT was EUR 23.3m compared with EUR 10.2m in Q1 2017. EBIT stemming from SimCorp Italiana, acquired in August 2017, accounted for EUR 4.7m, Q1 being the most profitable quarter for SimCorp Italiana. Currency fluctuations impacted EBIT negatively by EUR 2.1m compared with Q1 2017.   
  
  
• EBIT margin was 26.0% compared with 14.0% in Q1 2017, driven by strong revenue growth, SimCorp Italiana contribution and cost focus. Measured in local currencies, the EBIT margin was 27.0%.
  
  
• Net profit was EUR 16.3m compared with EUR 7.5m in Q1 2017.
  
  
• Total order intake from new and add-on licenses was EUR 9.9m, an increase of EUR 4.1m compared with same period last year. This includes the signing of a new French client.
  
  
• At March 31, 2018, the order book amounted to EUR 18.6m, an increase of EUR 5.1m when compared with order book at March 31, 2017. Compared with December 31, 2017, the order book was reduced by EUR 6.2m, as the conditions for revenue recognition for two significant contracts signed in Q4 2017 were met in Q1 2018.
  
  
• In February, the first of this year’s regular new SimCorp Dimension updates, Version 6.3, was released to the market, introducing the new Alternative Investments Manager. With this addition, SimCorp now offers management of all asset types, including alternatives, in one system. The new solution has received positive initial interest from clients.

Financial guidance

• SimCorp maintains its expectations for revenue growth and EBIT margin measured in local currencies for 2018. Revenue growth measured in local currencies is expected to be between 10% and 15%, whilst the expectation for EBIT margin measured in local currencies remains between 24.5% and 27.5%.

SimCorp CEO, Klaus Holse, comments: “The results for Q1 set us on the right track for the year. We have signed several large new contracts with existing clients, continue to see our services business develop positively and maintain a lower growth in overall cost relative to revenue. Increasing license revenue from new clients remains a priority for us, and we are pleased that our new client in France, Metropole Gestion, will implement SimCorp Dimension applying our new strategically important Standard Platforms approach.”

Investor presentation

SimCorp’s Executive Management Board will present the report at a conference call today Friday, May 18, 2018 at  3.30 pm (CEST). Please use any of the following phone numbers to dial in to the conference call:

At the end of the presentation there will be a Q&A session. It will also be possible to follow the presentation via this link: https://edge.media-server.com/m6/p/egyh6nef.

The presentation will be available prior to the conference call via SimCorp’s website www.simcorp.com.

Enquiries regarding this announcement should be addressed to:
Investor contacts:
Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8800, +45 2326 0000)
Michael Rosenvold, Chief Financial Officer, SimCorp A/S (+45 3544 8800, +45 5235 0000)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892 8881)

Media contact:
Anders Crillesen, Group Communications Director, (+45 3544 6474, +45 2779 1286)

Download the full report