vwd Vereinigte Wirtschaftsdienste AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
14.05.2009
Interim report according to Article 37x of the WpHG
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Company raises sales by 18.1 % in first quarter of 2009 - EBITDA unchanged
from previous year
Frankfurt am Main, May 14, 2009 - The vwd group, the leading German
provider of customized information, communication and technology solutions
for the securities business, successfully defied the financial crisis with
sales growth of 18.1 % to EUR 20.1 million in the first quarter of 2009.
Economic parameters: signs of slight stabilization
The real economic impact of the global financial crisis is becoming more
and more tangible. The steep economic downturn that started toward the end
of 2008 continued to gain speed in the first quarter of 2009. Government
stimulus packages and central banks' liquidity injections could not prevent
the major developed nations from slipping into a recession. Signs of
stabilization have emerged in the capital markets since March of this year.
Sector development: financial crisis leaves its mark
Like industry as a whole, the market for financial market information faces
a number of se-rious challenges. While the crisis has claimed thousands of
jobs in the investment banking business, thereby reducing the need for
upscale terminal products, demand for reliable and timely market
information has increased in other areas such as retail banking and risk
man-agement. Thanks to its focus on such market segments as retail banking,
private banking and wealth management, the vwd group has been partially
immune to the effects of the financial crisis.
Business development: vwd group posts higher sales
The vwd group raised its sales by 18.1 % to EUR 20.1 million (previous
year: EUR 17.1 million) in the first three months of the current fiscal
year. The financial crisis caused sales in vwd's online advertising
business to retreat. Reduced stock market volatility and lower trading
turnover resulted in a reduction of transaction-related revenue. Overall,
however, the negative effects of the financial crisis on the operative
business of the vwd group remained mod-erate. The portfolio management
solutions business developed positively. PortfolioNet AG, which was
included in the income statement for the first time, also contributed to
sales growth. In March 2009, the vwd group announced plans to extend its
business relationship with DZ Bank. The business relationship with this
major customer, which spans various product areas and offers particular
operational stability in the current crisis environment, is expected to
result in a sales volume of more than EUR 40 million over the next 10
years. With the acquisition of 51 % of the shares in the European
Derivatives Group (EDG), the vwd group will add expertise in certificate
ratings to its comprehensive portfolio of global financial information
offers. This will help the group strengthen its market position in retail
banking and wealth management even further.
Earnings position: vwd posts continually solid profits
The vwd group generated another strong result in the first three months of
2009. Despite the general market turmoil, earnings before interest, taxes,
depreciation and amortization (EBITDA) matched the strong year-earlier
quarter at EUR 2.7 million (previous year: EUR 2.7 million). As announced,
the purchase price allocation for new subsidiaries has resulted in
write-downs that caused earnings before interest and taxes (EBIT) to
decline by 17.6 % to EUR 1.8 million (previous year: EUR 2.2 million). The
unaudited net income fell by 20.7 % to EUR 1.1 million (previous year: EUR
1.4 million). Earnings after minorities remained unchanged at EUR 1.0
million (previous year: EUR 1.0 million). Earnings per share based on the
higher number of shares amounted to EUR 0.039 in the first quarter of 2009
(previous year: EUR 0.043).
Financial and asset position: vwd maintains solid financing
As of March 31, 2009, the vwd group's cash and cash equivalents amounted to
EUR 17.5 million (December 31, 2008: EUR 10.6 million). The increase in
liquid funds is largely due to pre-payments received from customers and the
premature redemption of a buyer's loan. Pre-payments received caused total
assets to rise to EUR 85.1 million (December 31, 2008: EUR 74.4 million)
and resulted in a seasonally related reduction of the equity ratio to 36.8
% (December 31, 2008: 41.2 %), which means that the vwd group remains
solidly financed.
Risks: little change
A renewed assessment of risks and opportunities did not result in any
changes compared with the statements made in the 2008 Annual Report.
Material events after March 31, 2009: acquisition of PortfolioNet AG and
EDG
On May 7, 2009, the vwd group exercised its call option to purchase the
remaining 60 % of shares in Portfolio Net AG. As a result, PortfolioNet AG
is now 100 % owned by the vwd group. The purchase price for the acquisition
amounted to CHF 8.1 million.
On May 8, 2009, the previously announced takeover of 51 % of the shares in
EDG was completed. The vwd group paid EUR 5.3 million for the acquisition
of EDG.
Outlook: continued profitable growth
The vwd group will feel the effects of the financial crisis more strongly
in 2009 than in 2008. In particular, a fast recovery in the online
advertising market appears unlikely. In addition, the vwd group expects
continued cost-cutting efforts in the fund management industry to
negatively impact its 'vwd fonds service.' The company, however, will be
able to profit from the financial crisis in other areas. Banks' high cost
awareness is boosting demand for the cost-efficient solutions of the vwd
group. Project lead times mean that the positive effects will only show
with a certain time lag here. Overall, the vwd group believes that it can
remain on its profitable growth course as a result of acquisitions and the
exploitation of cost synergies.
Frankfurt am Main, May 2009
vwd Vereinigte Wirtschaftsdienste AG
The Management Board
Forward-looking statements:
This interim statement contains forward-looking statements that reflect the
current views, expectations and assumptions of the vwd group and are based
on the information available to the company at the time of its preparation.
Forward-looking statements cannot guarantee that results and developments
will actually occur in the future, but are subject to risks and
uncertainties. Different factors may cause the future results and
development of the vwd group to deviate substantially from the expectations
and assumptions formulated in this statement. Changes in general economic
conditions, new legal parameters, the competitive situation and financial
market developments, in particular, can impact future results and
developments.
Additional information:
vwd Vereinigte Wirtschaftsdienste AG
Tilsiter Straße 1
60487 Frankfurt am Main
Regulated Market Frankfurt, General Standard
ISIN: DE 000 520470 5
Investor Relations:
Carsten Scharf
Tel: +49 (0) 69-50701-270
Fax: +49 (0) 69-50701-114
E-mail: investorrelations@vwd.com
http://www.vwd.com
Short profile of the vwd group:
vwd group offers customised information, ommunications and technology
solutions for the securities market. As a leading European provider, it
specialises in meeting individual cus-tomer requirements in the areas of
retail banking, private banking and wealth management. It offers innovative
solutions for financial service providers, investors and the media.
The group employs a workforce of over 400 in 16 locations throughout
Belgium, Germany, France, the Netherlands and Switzerland. It is an
international organisation that nevertheless maintains strong links to
local financial markets. The group's best-known brands are:
fi-nanztreff.de, vwd fonds service, vwd market manager, vwd portfolio
manager, TradeLink and Tai-Pan.
DGAP 14.05.2009
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Language: English
Issuer: vwd Vereinigte Wirtschaftsdienste AG
Tilsiter Straße 1
60487 Frankfurt am Main
Deutschland
Internet: http://www.vwd.com
End of News DGAP News-Service
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DGAP-IRE: vwd picks up pace of growth despite financial crisis
| Source: EQS Group AG