DGAP-News: JDC Group AG: JDC Group further increases revenues and earnings

JDC Group further increases revenues and earnings

- Revenues increase by around 10 percent to EUR 44.5 million in the first half of 2018

- EBIT quadruples, guidance confirmed

- Further growth impetus expected in the second half of the year

JDC Group AG (ISIN DE000A0B9N37) has confirmed the success of the Group's strategy in the first half of 2018 with the figures released today.

Revenues increased by around 10 percent to EUR 44.5 million (H1 2017: EUR 40.6 million). Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by roughly 18 percent to EUR 2.0 million (H1 2017: EUR 1.7 million). Decreased depreciation and amortisation meant earnings before interest and tax (EBIT) increased significantly more than EBITDA, quadrupling to EUR 0.7 million (H1 2017: EUR 0.2 million).

The positive performance results primarily from an increase in revenues and earnings in the Advisortech segment. The outsourcing agreement with Lufthansa subsidiary Albatros has started successfully and will contribute even more significantly to revenue growth in the second half of the year. An increase in personnel and IT expenses, in anticipation of the major projects acquired, slightly affected earnings in the second quarter, as a result of which second quarter earnings were at roughly the same level as previous year despite good sales growth. The contribution to sales by outsourcing will at least double in the second half of the year compared to the first, and with stable planned expenditure will accelerate growth in earnings.

"We are fully satisfied with the development in the first half of the year," Ralph Konrad, CFO of the JDC Group, said about the figures. "The fact that we were able to match the revenues of the first quarter of 2018 in the always seasonally weaker second-quarter shows that we are on a stable growth trajectory."

Revenues of the Advisortech division increased by around 10 percent to EUR 36.5 million. The Advisory division increased its sales by around 3 percent to EUR 12.1 million.

The significant key figures for the second quarter and first half of 2018 are as follows:

"We have been investing sustainably in our digitisation strategy for years and as a result have developed into the ideal partner for large brokers, distributors and banks who are looking for outsourcing solutions in conducting their insurance business," said Sebastian Grabmaier, CEO of the JDC Group, explaining the group's strategy: "During the course of the year, we expect to win business from well-known partners, which will provide further growth impetus to the group. While we want to further expand our platform in the core business, we will also present the first innovations in our newly founded blockchain lab as early as 2018."

The JDC Group confirms its guidance with revenues of EUR 100 million and an EBITDA of at least EUR 6 million for 2018.

The interim report for the first half and second quarter of 2018 and further information on JDC Group AG can be found at www.jdcgroup.de.

The Letter to Shareholders for the 3rd quarter will be published on 22 November 2018.

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 1.5 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.