9M 2018 highlights:
- Reported revenue was EUR 253.5m, an increase of 10.6% when compared with 9M 2017, and an increase of 13.7% when measured in local currencies. As SimCorp Italiana, ac-quired in August 2017, accounted for 5.5%-points of the increase, organic revenue growth was 8.2%. Q3 2018 revenue in reported currency was EUR 80.7m, 0.5% lower than in Q3 2017.
- EBIT was EUR 52.5m compared with EUR 43.0m in 9M 2017. Currency fluctuations impacted EBIT negatively by EUR 3.6m during the first nine months of the year.
- EBIT margin was 20.7% compared with 18.8% in 9M 2017, driven by revenue growth, SimCorp Italiana contribution, and general cost focus. Measured in local currencies, the EBIT margin was 21.5% and the underlying organic EBIT margin was 20.6%.
- Net profit was EUR 39.3m compared with EUR 31.1m in 9M 2017.
- Total order intake* from new and add-on licenses was EUR 40.4m, an increase of EUR 7.8m or 24% compared with the same period last year. The order intake in Q3 2018 of EUR 14.5m includes signing of a new client for a subscription agreement in North America and three larger add-on license agreements in Central Europe, Northern Europe and North America.
- At September 30, 2018, the order book* amounted to EUR 30.3m, an increase of EUR 15.1m when compared with the order book at September 30, 2017. The order book increased by EUR 4.5m in Q3 2018, primarily due to new client driven development orders signed in Southern Europe and North America, where income will be recognized when the software is delivered.
- Free cash flow was EUR 64.3m compared with EUR 36.1m in 9M 2017 due to positive working capital development in receivables and prepayments from clients.
- 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: “While Q3 was slow in terms of order intake and license revenue, we are pleased with the signing of a new client in North America. We delivered against our targets of double-digit growth and improved EBIT margin for the first nine months, and with a strong order book and sales pipeline, the outlook for Q4 remains positive.”
* For comparison reason, the order intake and order book do not include SimCorp Italiana (Sofia).
SimCorp’s Executive Management Board will present the report at a conference call Monday, November 12, 2018 at 11:00 am (CET). Please use any of the following phone numbers to dial in to the conference call:
From Denmark: +45 3515 8049
From USA: +1 929-477-0324
From other countries: +44 (0)330 336 9105
Pin code to access the call: 6030407
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:
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:
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)
Anders Crillesen, Group Communications Director, (+45 3544 6474, +45 2779 1286)
Company Announcement no. 12/2018