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08.05.2024 07:31:05 - dpa-AFX: EQS-News: GFT with a solid start in a challenging environment (english)
GFT with a solid start in a challenging environment
EQS-News: GFT Technologies SE / Key word(s): Quarterly / Interim
Statement/Quarter Results
GFT with a solid start in a challenging environment
08.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
GFT with a solid start in a challenging environment
Successful M&A strategy supports growth
* Revenue growth of 13 per cent in the first quarter of 2024
* Adjusted EBIT increased by 6 per cent to around EUR 17 million
* Acquired companies targens and Sophos Solutions contribute to growth
Stuttgart, 08 May 2024 - GFT Technologies SE (GFT) continued its solid
growth in the first quarter of 2024 despite the ongoing challenging market
environment. Group revenue increased by 13 per cent compared to the same
quarter of the previous year. Growth was supported by the successful
acquisitions of the German targens GmbH, which was completed in April 2023,
and the Colombian company Sophos Solutions in January of this year. Business
with banks and industrial customers picked up particularly strongly, with
sales increases of 19 and 16 per cent respectively. Adjusted earnings before
interest and taxes (adjusted EBIT) rose by 6 per cent. For the current year,
the company expects sales to grow by 15 per cent to around EUR 905 million
and adjusted EBIT by 16 per cent to around EUR 85 million.
GFT recorded above-average growth in Europe with an increase in revenue of
27 per cent. The most important driver here was the German market. Thanks in
part to the acquisition of targens, Germany became GFT's second-largest
market with a 61 per cent increase in revenue. The Spanish, Italian and
French markets also developed very positively. In addition, GFT also
achieved dynamic growth again in Brazil, its largest market, following a
successful turnaround: revenue there increased by 11 per cent compared to
the same quarter of the previous year.
'Despite the global challenges, our company has made a solid start to 2024.
This was due to both our core business and our successful M&A strategy,'
says GFT CEO Marika Lulay. 'We are optimally positioned also in AI and
digital currencies. We can see this in the great interest in the solutions
from our AI.DA Marketplace and the Universal Digital Payment Network, which
recently went to market with a commercial sandbox. Several commercial and
central banks in Asia and Europe are already using this UDPN test
environment to test and develop the latest digital currency technologies and
use cases.'
The GFT Group generated revenue of EUR 212.39 million in the first quarter
of 2024. The company thus exceeded the prior-year figure of EUR 187.69
million by 13 per cent. GFT achieved growth of 19 per cent in the Banking
sector and 16 per cent in the Industry & Others sector. Revenue in the
insurance business fell by 11 per cent. This was due to the fact that GFT
focussed more strongly on expanding its core business with banks in view of
the difficult economic conditions in numerous countries.
Above-average growth in Europe, Brazil with significant growth again
In the Continental Europe segment, GFT's revenue grew by 27 per cent. The
acquisition of targens GmbH, which was completed in April 2023, contributed
around EUR 10.65 million in revenue. This made Germany the second-largest
market for GFT.
Revenue in the Americas, UK & APAC segment increased by 4 per cent compared
to the previous year. This was primarily due to the acquisition of Sophos
Solutions, which was included in the Group figures with effect from 1
February 2024. In addition, dynamic growth in Brazil and Mexico helped to
offset the weak development in the Anglo-Saxon markets.
'We once again increased revenue and earnings in the first quarter of 2024,
despite the rather challenging business climate in some countries,' adds GFT
CFO Jochen Ruetz. 'The successfully completed integration of targens and the
ongoing integration of Sophos Solutions are success stories that will
continue to drive our growth.'
Earnings continued to grow
Adjusted EBIT increased by 6 per cent year-on-year to EUR 17.23 million (Q1
2023: EUR 16.28 million). The adjusted EBIT margin was 8.1 per cent in the
first quarter of 2024 (Q1 2023: 8.7 per cent). At EUR 15.00 million, EBT
remained at the same level as in the same period of the previous year (Q1
2023: EUR 15.04 million).
Financial stability and flexibility remain high
Operating cash flow increased year-on-year to EUR 6.42 million (Q1 2023: EUR
-3.04 million). Net liquidity fell to EUR -77.12 million (31 December 2023:
EUR 4.39 million), mainly due to the acquisition of Sophos Solutions SAS. As
a result of the acquisition and the associated increase in total assets, the
equity ratio also fell by 4 percentage points to 39 per cent (31 December
2023: 43 per cent).
As at 31 March 2024, the Group employed a total of 10,626 full-time
equivalents (FTEs)
employees. This corresponds to an increase of 16 per cent compared to 9,134
FTEs at the end of 2023. Sophos Solutions contributed 1,556 FTEs to this
significant increase in the number of employees.
Megatrends AI and digital currencies offer attractive growth opportunities
There was a noticeable increase in demand for AI solutions such as GFT AI
Impact Beta in all core sectors. This solution utilises generative AI to
support various processes in the software development lifecycle. It is
currently being tested by numerous tier 1 banks, insurance companies and
infrastructure companies in South America and Europe or is about to be
rolled out productively in day-to-day business. It increases the overall
productivity of the software development lifecycle by 25 per cent - and even
more in some scenarios.
The Universal Digital Payment Network (UDPN) also offers great
opportunities. The platform co-developed by GFT, in which GFT is also a
partial owner, enables international transactions with regulated digital
currencies. Interest from both central and commercial banks is so great that
a commercial sandbox was launched on the market this year. With the
introduction of central bank digital currencies, GFT should generate
transaction-based revenue via the platform - a business model that would be
highly scalable and significantly more profitable than the traditional core
business.
GFT expects solid revenue and earnings growth in 2024
GFT expects further significant growth in Group revenue and earnings in the
financial year 2024. Both will be driven primarily by the acquisition of
Sophos Solutions, which is recognised pro rata temporis from the closing of
the transaction on 1 February 2024. The integration of the company is
proceeding according to plan and should be completed in the first quarter of
2025. Increasing digitalisation and the resulting strong demand for cloud
services continue to drive GFT's business growth.
In detail, the company continues to expect revenue growth of 15 per cent. In
order to improve cost transparency, GFT has reclassified revenue-related
taxes totalling EUR 15 million in Brazil. Revenue is therefore now expected
to total EUR 905 million (previously: EUR 920 million). Adjusted EBIT is
forecast to increase by 16 per cent to around EUR 85 million. The Group
expects earnings before taxes (EBT) to be around EUR 72 million, which
corresponds to growth of around 6 per cent.
Key figures (IFRS)
(Deviations possible due to rounding differences)
1) Adjusted due to reclassification of sales-related taxes in Brazil in the
amount of EUR -2.98 million.
2) Adjusted for effects from M&A activities and share price-based effects in
connection with the valuation of variable management remuneration.
Further information on the definition of alternative performance indicators
can be found here on the GFT website.
Marika Lulay, CEO of GFT Source: Ingrid Hertfelder/GFT
Download image
This press release is also available for download via the GFT newsroom
1. mailto:markus.j.mueller@gft.com 1. mailto:Andreas.Herzog@gft.com
About GFT - Shaping the future of digital business
GFT is a digital transformation pioneer. By leveraging next-generation
technologies, we enable clients to boost their productivity with intelligent
software solutions. We focus on Digital Finance, Enterprise AI & Data
Solutions, and Platform Modernisation.
GFT's strengths include deep technological excellence, a strong ecosystem of
partners, and industry expertise. We are agile@scale and boost digital
transformation for clients from the finance and insurance sectors, as well
as the manufacturing industry. GFT talents create, implement, and manage
software applications to enable innovative businesses while complying with
regulations.
With locations in 20 markets around the globe, GFT ensures proximity to its
clients. We draw on over 35 years of experience and a global team of over
12,000 determined talents. GFT provides them with career opportunities in
the most innovative areas of software engineering. The GFT Technologies SE
share is listed in the SDAX index of the German Stock Exchange (ticker:
GFT-XE).
www.gft.com
https://www.gft.com/int/en/blog
www.linkedin.com/company/gft-technologies
www.twitter.com/gft_tech
---------------------------------------------------------------------------
08.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1897911 08.05.2024 CET/CEST
EQS-News: GFT Technologies SE / Key word(s): Quarterly / Interim
Statement/Quarter Results
GFT with a solid start in a challenging environment
08.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
GFT with a solid start in a challenging environment
Successful M&A strategy supports growth
* Revenue growth of 13 per cent in the first quarter of 2024
* Adjusted EBIT increased by 6 per cent to around EUR 17 million
* Successful AI solutions and launch of the commercial UDPN All-in-One
Sandbox
* Acquired companies targens and Sophos Solutions contribute to growth
* Revenue and earnings growth forecast for 2024 confirmed: Revenue to grow
by 15 per cent, adjusted EBIT by 16 per cent
Stuttgart, 08 May 2024 - GFT Technologies SE (GFT) continued its solid
growth in the first quarter of 2024 despite the ongoing challenging market
environment. Group revenue increased by 13 per cent compared to the same
quarter of the previous year. Growth was supported by the successful
acquisitions of the German targens GmbH, which was completed in April 2023,
and the Colombian company Sophos Solutions in January of this year. Business
with banks and industrial customers picked up particularly strongly, with
sales increases of 19 and 16 per cent respectively. Adjusted earnings before
interest and taxes (adjusted EBIT) rose by 6 per cent. For the current year,
the company expects sales to grow by 15 per cent to around EUR 905 million
and adjusted EBIT by 16 per cent to around EUR 85 million.
GFT recorded above-average growth in Europe with an increase in revenue of
27 per cent. The most important driver here was the German market. Thanks in
part to the acquisition of targens, Germany became GFT's second-largest
market with a 61 per cent increase in revenue. The Spanish, Italian and
French markets also developed very positively. In addition, GFT also
achieved dynamic growth again in Brazil, its largest market, following a
successful turnaround: revenue there increased by 11 per cent compared to
the same quarter of the previous year.
'Despite the global challenges, our company has made a solid start to 2024.
This was due to both our core business and our successful M&A strategy,'
says GFT CEO Marika Lulay. 'We are optimally positioned also in AI and
digital currencies. We can see this in the great interest in the solutions
from our AI.DA Marketplace and the Universal Digital Payment Network, which
recently went to market with a commercial sandbox. Several commercial and
central banks in Asia and Europe are already using this UDPN test
environment to test and develop the latest digital currency technologies and
use cases.'
The GFT Group generated revenue of EUR 212.39 million in the first quarter
of 2024. The company thus exceeded the prior-year figure of EUR 187.69
million by 13 per cent. GFT achieved growth of 19 per cent in the Banking
sector and 16 per cent in the Industry & Others sector. Revenue in the
insurance business fell by 11 per cent. This was due to the fact that GFT
focussed more strongly on expanding its core business with banks in view of
the difficult economic conditions in numerous countries.
Above-average growth in Europe, Brazil with significant growth again
In the Continental Europe segment, GFT's revenue grew by 27 per cent. The
acquisition of targens GmbH, which was completed in April 2023, contributed
around EUR 10.65 million in revenue. This made Germany the second-largest
market for GFT.
Revenue in the Americas, UK & APAC segment increased by 4 per cent compared
to the previous year. This was primarily due to the acquisition of Sophos
Solutions, which was included in the Group figures with effect from 1
February 2024. In addition, dynamic growth in Brazil and Mexico helped to
offset the weak development in the Anglo-Saxon markets.
'We once again increased revenue and earnings in the first quarter of 2024,
despite the rather challenging business climate in some countries,' adds GFT
CFO Jochen Ruetz. 'The successfully completed integration of targens and the
ongoing integration of Sophos Solutions are success stories that will
continue to drive our growth.'
Earnings continued to grow
Adjusted EBIT increased by 6 per cent year-on-year to EUR 17.23 million (Q1
2023: EUR 16.28 million). The adjusted EBIT margin was 8.1 per cent in the
first quarter of 2024 (Q1 2023: 8.7 per cent). At EUR 15.00 million, EBT
remained at the same level as in the same period of the previous year (Q1
2023: EUR 15.04 million).
Financial stability and flexibility remain high
Operating cash flow increased year-on-year to EUR 6.42 million (Q1 2023: EUR
-3.04 million). Net liquidity fell to EUR -77.12 million (31 December 2023:
EUR 4.39 million), mainly due to the acquisition of Sophos Solutions SAS. As
a result of the acquisition and the associated increase in total assets, the
equity ratio also fell by 4 percentage points to 39 per cent (31 December
2023: 43 per cent).
As at 31 March 2024, the Group employed a total of 10,626 full-time
equivalents (FTEs)
employees. This corresponds to an increase of 16 per cent compared to 9,134
FTEs at the end of 2023. Sophos Solutions contributed 1,556 FTEs to this
significant increase in the number of employees.
Megatrends AI and digital currencies offer attractive growth opportunities
There was a noticeable increase in demand for AI solutions such as GFT AI
Impact Beta in all core sectors. This solution utilises generative AI to
support various processes in the software development lifecycle. It is
currently being tested by numerous tier 1 banks, insurance companies and
infrastructure companies in South America and Europe or is about to be
rolled out productively in day-to-day business. It increases the overall
productivity of the software development lifecycle by 25 per cent - and even
more in some scenarios.
The Universal Digital Payment Network (UDPN) also offers great
opportunities. The platform co-developed by GFT, in which GFT is also a
partial owner, enables international transactions with regulated digital
currencies. Interest from both central and commercial banks is so great that
a commercial sandbox was launched on the market this year. With the
introduction of central bank digital currencies, GFT should generate
transaction-based revenue via the platform - a business model that would be
highly scalable and significantly more profitable than the traditional core
business.
GFT expects solid revenue and earnings growth in 2024
GFT expects further significant growth in Group revenue and earnings in the
financial year 2024. Both will be driven primarily by the acquisition of
Sophos Solutions, which is recognised pro rata temporis from the closing of
the transaction on 1 February 2024. The integration of the company is
proceeding according to plan and should be completed in the first quarter of
2025. Increasing digitalisation and the resulting strong demand for cloud
services continue to drive GFT's business growth.
In detail, the company continues to expect revenue growth of 15 per cent. In
order to improve cost transparency, GFT has reclassified revenue-related
taxes totalling EUR 15 million in Brazil. Revenue is therefore now expected
to total EUR 905 million (previously: EUR 920 million). Adjusted EBIT is
forecast to increase by 16 per cent to around EUR 85 million. The Group
expects earnings before taxes (EBT) to be around EUR 72 million, which
corresponds to growth of around 6 per cent.
Key figures (IFRS)
(Deviations possible due to rounding differences)
In million euros Q1 2024 Q1 2023
Revenue 212.39 187.691) 13%
EBITDA 21.81 19.89 10%
Adjusted EBIT2) 17.23 16.28 6%
EBIT 15.72 14.83 6%
EBT 15.00 15.04 0%
Net income 10.62 10.54 1%
Earnings per share in EUR 0.40 0.40 0%
Operating cash flow 6.42 -3.04 >+100%
In million euros 31.03.2024 31.12.2023
Employees (FTE) 10,626 9,134 16%
Order backlog 404.58 386.08 5%
Net liquidity -77.12 4.39 >-100%
Equity ratio (in per cent) 39% 43% -4 PP
1) Adjusted due to reclassification of sales-related taxes in Brazil in the
amount of EUR -2.98 million.
2) Adjusted for effects from M&A activities and share price-based effects in
connection with the valuation of variable management remuneration.
Further information on the definition of alternative performance indicators
can be found here on the GFT website.
Marika Lulay, CEO of GFT Source: Ingrid Hertfelder/GFT
Download image
This press release is also available for download via the GFT newsroom
Your contacts Press Investors Dr Markus Müller Andreas Herzog Group Public Relations Investor Relations GFT Technologies SE GFT Technologies SE Schelmenwasenstraße 34 Schelmenwasenstraße 34 70567 Stuttgart 70567 Stuttgart Germany Germany +49 711 62042-344 +49 711 62042-383 (1)markus.j.mueller@gft.com (1)Andreas.Herzog@gft.com
1. mailto:markus.j.mueller@gft.com 1. mailto:Andreas.Herzog@gft.com
About GFT - Shaping the future of digital business
GFT is a digital transformation pioneer. By leveraging next-generation
technologies, we enable clients to boost their productivity with intelligent
software solutions. We focus on Digital Finance, Enterprise AI & Data
Solutions, and Platform Modernisation.
GFT's strengths include deep technological excellence, a strong ecosystem of
partners, and industry expertise. We are agile@scale and boost digital
transformation for clients from the finance and insurance sectors, as well
as the manufacturing industry. GFT talents create, implement, and manage
software applications to enable innovative businesses while complying with
regulations.
With locations in 20 markets around the globe, GFT ensures proximity to its
clients. We draw on over 35 years of experience and a global team of over
12,000 determined talents. GFT provides them with career opportunities in
the most innovative areas of software engineering. The GFT Technologies SE
share is listed in the SDAX index of the German Stock Exchange (ticker:
GFT-XE).
www.gft.com
https://www.gft.com/int/en/blog
www.linkedin.com/company/gft-technologies
www.twitter.com/gft_tech
---------------------------------------------------------------------------
08.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
Language: English
Company: GFT Technologies SE
Schelmenwasenstraße 34
70567 Stuttgart
Germany
Phone: +49 (0)711/62042-0
Fax: +49 (0)711/62042-301
E-mail: ir@gft.com
Internet: www.gft.com
ISIN: DE0005800601
WKN: 580060
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard);
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1897911
End of News EQS News Service
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1897911 08.05.2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
GFT TECHNOLOGIES SE | 580060 | Frankfurt | 27,450 | 29.05.24 11:15:21 | -0,100 | -0,36% | 26,900 | 27,200 | 27,300 | 27,550 |
