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SimCorp reports revenue growth of 17% and EBIT margin of 22% in H1 2018

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H1 2018 highlights:

  • Reported revenue was EUR 172.8m, an increase of 16.7% when compared with H1 2017, and an increase of 21.1% when measured in local currencies. As SimCorp Italiana, acquired in August 2017, accounted for 7.7%-points of the increase, organic revenue growth was 13.4%.
  • EBIT was EUR 37.4m compared with EUR 23.4m in H1 2017. EBIT stemming from SimCorp Italiana accounted for EUR 5.4m. Currency fluctuations impacted EBIT negatively by EUR 3.2m during the first half year.
  • EBIT margin was 21.6% compared with 15.8% in H1 2017, driven by license revenue growth, SimCorp Italiana contribution, and general cost focus. Measured in local currencies, the EBIT margin was 22.6% and the underlying organic EBIT margin was 20.9%.
  • Net profit was EUR 27.5m compared with EUR 16.9m in H1 2017.
  • Total order intake* from new and add-on licenses was EUR 25.9m, an increase of EUR 9.2m or 55% compared with the same period last year. The order intake in Q2 2018 of EUR 16.0m includes signing of a large add-on license agreement in Central Europe and two new clients in Northern Europe.
  • At June 30, 2018, the order book* amounted to EUR 25.8m, an increase of EUR 12.4m when compared with the order book at June 30, 2017. The order book increased by EUR 7.3m in Q2 2018, primarily due to the large add-on order, plus one of the new license sales signed in Q2 2018 having conditions to be fulfilled before revenue can be recognized.

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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%, while the expectation for EBIT margin measured in local currencies remains between 24.5% and 27.5%.

Klaus Holse, SimCorp CEO comments: “We continue to drive solid growth in revenues, mainly from our services business and from sales to existing clients. A dedicated cost focus ensured a positive development in EBIT margin compared to H1 2017. We are encouraged by our sales pipeline of potential orders to new and existing clients for the next 6-12 months.”

* The order intake and order book does not include SimCorp Italiana (Sofia).

Investor presentation

SimCorp’s Executive Management Board will present the report at a conference call today at 2:00 pm (CEST). Please use any of the following phone numbers to dial in to the conference call:

From Denmark: +45 35 15 81 21

From USA: +1 646-828-8193

From other countries: +44 (0)330 336 9411

Pin code to access the call: 3459348

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/756mcpyk.

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 8802, +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)

Company Announcement no. 11/2018