DGAP-News: JDC Group AG

JDC Group continues to grow

- Preliminary revenues 2017 grew by roughly 8 percent to nearly EUR 85 million.

- Adjusted EBITDA for full year 2017 rose by around 63% to EUR 3.9 million.

- Strong start to the year: New orders up by 50% compared to previous year.

- Breaking the 100 million Euro revenues mark expected for 2018.

The JDC Group AG (ISIN DE000A0B9N37), the leading advisortech company in Europe, completed a successful fiscal year 2017. Based on preliminary and yet unaudited financial figures released today, revenues for the full year 2017 rose by roughly 8% to EUR 84.5 million.

The EBITDA showed even stronger growth. Adjusted for non-recurring expenses in connection with key account projects as well as implementation of legal changes under European directives MiFID II and IDD amounting to around EUR 0.7 million in 2017, Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by roughly 63 percent to EUR 3.9 million (2016, likewise adjusted for non-recurring effects in the amount of EUR 0.3 million: EUR 2.4 million). Unadjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose by 19 percent to EUR 3.2 million (2016: EUR 2.7 million).

Growth in revenues in the fourth quarter stood at approx. 4 percent, revenues therefore rose to EUR 24.6 million (Q4 2016: EUR 23.6 million). The principal reason for the weaker than expected fourth quarter lay primarily in the general absence of year-end business typical for the financial market. A noticeable uncertainty on the part of end customers following the outcome of German national elections and the uncertainty on the broker market in advance of implementation of the new statutory changes under MiFiD II and IDD, which had a significant impact on brokerage practices, negatively affected new business at JDC Group during the fourth quarter.

Owing to revenue levels and the one-off effects described, EBITDA in Q4 2017 stood at EUR 0.9 million (Q4 2016: EUR 2.0 million) and was therefore unable to achieve expectations.

In the full year 2017, however, both the Advisortech and Advisory segments gained significantly with respect to revenues and EBITDA. In the Advisortech segment, revenues rose by 7.4 percent to EUR 66.6 million and the EBITDA increased by 15.7 percent to EUR 3.3 million.

The advisory segment, which represents the traditional sales channel at JDC Group, showed strong performance over the course of the year, increasing revenues by 11.8 percent to EUR 26.6 million. EBITDA for this segment rose by 22.7 percent to EUR 1.3 million.

"Even though growth in revenues and earnings in the fourth quarter was not as positive as in previous quarters, we are quite pleased with the performance for the full year 2017. We were able to show that growth in revenues of 8% results in an increase in EBITDA of over 60%. That demonstrates the enormous scalability of our platform," says Ralph Konrad, CFO at JCD Group AG. "Moreover, by gaining additional key accounts and acquiring further holdings we were able to lay the groundwork for a very successful 2018."

Dr Sebastian Grabmaier, JDC Group CEO, adds: "2018 has gotten off to a very good start. Measured by the growth in new orders, the JDC Group companies registered a more than 50% increase in new business. The revenues and earnings effects in connection with the successful launch of our partnership with our new client, Lufthansa, on 15 January and the successful integration of the Assekuranz Herrmann Group, the insurance broker we acquired in January of 2018, lead us to expect a record 2018. We are also making good progress in digitising our business operations. Our recently formed blockchain lab will deliver an initial prototype during the course of this year and our token event is being planned for the end of the second quarter.

In 2018, the management board expects to see JDC break the 100 million Euro revenues mark, with EBITDA of more than EUR 6 million.

Revenues and EBITDA on a preliminary basis were as follows:

The company plans to release the final, audited figures for the fiscal year 2017 on 27 April 2018. More information on JDC Group AG is available at www.jdcgroup.de.

About JDC Group AG

JDC Group AG (ISIN: DE000A0B9N37) stands for modern financial advice and intelligent financial technology for advisors and customers. In the "Advisortech" business unit, we provide our customers and advisors with modern advisory and administration technology using the Jung, DMS & Cie. Groups. While many sales and distribution partners perceive the technological transformation as a problem and the young Fintech companies as the new competitors, we perceive the "technology" factor to be a great opportunity. Solutions from the "Advisortech" business unit will help advisors in the future to take even better care of their customers and generate increased sales in their earnings. In the "Advisory" segment, we procure financial products for private end customers via free advisors, brokers and financial distributors using the FiNUM Group. With over 16,000 connected sales partners, a portfolio of more than EUR 4.5 billion and over EUR 1.4 billion in product sales each year, we are one of the market leaders in the German-speaking region.

Disclaimer:

The Directors of JDC Group AG hold a significant participating interest in JDC Group AG and have a self-interest in the nature and content of the information provided in this release.