vwd Vereinigte Wirtschaftsdienste AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
11.11.2010 08:05
Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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vwd hurt by financial industry's unwillingness to invest - new phase of
growth planned for 2011
vwd AG/interim statement/forecast
- Sales and EBITDA slip during the first nine months of 2010
- Strong fourth quarter expected
- Market environment for acquisitions favorable
- Sales outlook of EUR 75 million for the full year of 2010 confirmed
- Predicted EBITDA margin slightly below 10 %
Frankfurt am Main, November 11, 2010 - The vwd Vereinigte
Wirtschaftsdienste AG, a leading provider of financial-market information
in Europe, reports the following financial results (IFRS) for the Group
during the first nine months of 2010:
Key financial figures:|[![CDATA[|[pre|]]]|]
in EUR '000 Q3 2010 Q 3 2009* 9M 2010 9M 2009*
Sales 18,267 19,185 55,575 58,750
EBITDA 1,686 1,972 5,512 7,053
EBIT 578 1,062 2,227 4,212
Net income 144 636 977 2,554
Earnings per share in 0.001 0.015 0.023 0.079
|[![CDATA[|[/pre|]]]|]*Adjusted
Business trends:
With a slight lag, the vwd group felt the full impact of the global
economic and financial crisis during the first nine months of 2010. While
the company was able to increase both sales and earnings in recent years as
the global financial crisis peaked, it is now experiencing the delayed
impact.
The first nine months continued to be characterized by the financial
industry's widespread unwillingness to make capital expenditures, a trend
that has prevented the vwd group from continuing the previous years' strong
business performance. In particular, the company's sale of software
licenses and its project business fell sharply. vwd customers have put off
installing new systems or delayed projects that were already under way in
an effort to optimize their cost structures. Demand for cross-media
publication and communication concepts remained anemic as well. In
addition, some contract terminations made at the height of the financial
crisis were felt for the first time during the period under review. In
spite of the large number of new contracts, not all terminated agreements
could be completely offset. Overall, the number of new contracts was below
the company's expectations. Advertising income from the online portal
'finanztreff.de' operated by vwd has not yet begun to approach the very
good levels achieved in recent years.
During the reporting period of January - September 30, 2010, sales fell by
EUR 3,175.9 thousand (- 5.4 %) to EUR 55,574.6 thousand (previous year: EUR
58,750.5 thousand). Including internally produced and capitalized assets,
the vwd group generated total sales of EUR 55,734.4 thousand (previous
year: EUR 58,846.1 thousand). Even though sales dropped, consolidated
earnings remained clearly positive. Earnings before interest, taxes,
depreciation and amortization dropped by EUR 1,540.5 thousand to EUR
5,512.2 thousand (previous year: EUR 7,052.7 thousand). The 21.8 % decrease
was due to lower sales and substitution effects as high-margin business
activities were replaced by lower-margin ones.
The company's earnings strength was also sapped by higher depreciation,
amortization and impairments, which rose by EUR 444.8 thousand (15.7 %) to
EUR 3,285.3 thousand (previous year: EUR 2,840.5 thousand). This rise is
largely attributed to purchase-price allocations (PPA) totaling EUR 1,318
thousand (previous year: EUR 1,125 thousand) for companies acquired in
recent years. EBIT fell by EUR 1,985.3 thousand (- 47.1 %) to EUR 2,226.9
thousand (previous year: EUR 4,212.2 thousand). In consideration of
fictional interest expenses of EUR 459.9 thousand related to an existing
put option, net income decreased by EUR 1,576.7 thousand (- 61.7 %) to EUR
976.9 thousand (previous year: EUR 2,553.7 thousand).
During the third quarter, the vwd group generated sales of EUR 18,267.0
thousand, compared with EUR 19,185.0 thousand in the same quarter last
year. This represents a drop of EUR 918.0 thousand (- 4.8 %). Quarterly
EBITDA amounted to EUR 1,685.5 thousand, EUR 286.7 thousand (- 14.5 %)
below the total of EUR 1,972.2 thousand produced in the same quarter last
year. During the third quarter of 2010, depreciation, amortization and
impairments were taken on purchase-price allocations (PPA) totaling EUR
585.8 thousand (previous year: EUR 422 thousand). Overall, third-quarter
EBIT dropped by EUR 483.9 thousand (- 45.6 %), decreasing from EUR 1,062.1
thousand to EUR 578.2 thousand. At EUR 143.5 thousand, net income was EUR
492 thousand (- 77.4 %) less than the total of EUR 635.5 thousand reported
in the same period last year.
The performance of the individual segments:
Segment Market Data Solutions (MDS)
In the MDS Segment, sales of market-data systems, browser-based
applications and portfolio-management solutions decreased by EUR 1,626
thousand (- 5.9 %) to EUR 26,125 thousand (previous year: EUR 27,751
thousand). In this segment, recurring revenues remained at the previous
year's level, while non-recurring income from the implementation of major
projects was lacking. Furthermore, business with private customers eased,
causing segment EBITDA to fall by EUR 744 thousand (- 19.8 %) to EUR 3,010
thousand (previous year: EUR 3,754 thousand).
Segment Technology Solutions (TS)
Business fell most sharply in the TS Segment, an area in which vwd offers
technology and transaction solutions as well as consulting and outsourcing
assistance. The transaction business suffered from lower trading turnover,
the direct result of the general capital-market situation, and performed
below the previous year's level. Business remained stable only in the
provision of financial data to the print media, an area in which vwd is the
market leader in several European countries. While business with current
customers remained stable in the TS Segment, non-recurring income also was
well below expectations as a result of the strong reluctance to make
capital expenditures. The segment's sales dropped by EUR 787 thousand (-
5.2 %) to EUR 14,275 thousand (previous year: EUR 15,062 thousand). EBITDA
fell by EUR 831 thousand (- 45 %) to EUR 1,017 thousand (previous year: EUR
1,848 thousand).
Specialised Marketing Solutions (SMS)
With target-group-specific publication and communication concepts in daily
newspapers and business media as well as in online marketing, vwd generated
sales of EUR 16,195 thousand during the first nine months of the year, or
EUR 596 thousand (- 3.5 %) less than last year (previous year: EUR 16,791
thousand). On the one hand, the steep drop in sales produced by the
company's business with fund management companies could be offset with new
partnerships. On the other hand, the EDG Group was fully consolidated for
the first time, enabling segment EBITDA to slightly rise by EUR 35 thousand
(2.4 %) to EUR 1,485 thousand (previous year: EUR 1,450 thousand) in spite
of the sharp decrease in the distribution business.
Financial and asset situation
On September 30, 2010, the vwd group had cash and cash equivalents of EUR
8,823.9 thousand (December 31, 2009: EUR 9,293.1 thousand). As of September
30, 2010, total assets had fallen to EUR 78,618.3 thousand, compared with
EUR 80,952.6 thousand as of the reporting date of December 30, 2009. The
equity ratio rose from 37.0 % to 38.2 %. As a result, the vwd group remains
solidly financed.
Report of the Management Board
Edmund J. Keferstein, Chairman of the Management Board of vwd vereinigte
Wirtschaftsdienste AG, said of the period under review:
'The first nine months of fiscal year 2010 did not live up to our
expectations. We have used this period to further tap the synergy potential
created by the company acquisitions we made in the past. One major focus of
our work is streamlining the group's structure. We will take advantage of
every opportunity to organizationally optimize the vwd group and to further
cut costs. From today's perspective, the year of 2010 marks the bottom of
business trends. Drawing on the continuing stable company situation, we are
reviewing how we can further strengthen our operating business through
acquisitions. The increasing regulation of financial markets makes the use
of refined data and new IT systems essential for the securities business.
Over the mid- and long-term, we will profit disproportionately from this
trend. We are convinced of this.'
Risks
A new risk and opportunity review has found no new changes related to the
statements contained in the Annual Report 2009.
Outlook
As it did last year, the company expects the fourth quarter to be much
stronger than the third quarter because major ongoing projects are being
completed. Despite the difficult business conditions in the first nine
months of the year, the Management Board expects sales for 2010 will reach
about EUR 75 million. Expected EBITDA will probably total slightly more
than EUR 7 million.
Forward-looking statements
This document can contain forward-looking statements about vwd's business,
financial and earnings position and earnings forecast. Such words as 'can,'
'will,' 'expect,' 'anticipate,' 'consider,' 'intend,' 'plan,' 'believe,'
'continue to' and 'estimate' as well as forms of these terms or similar
words indicate such forward-looking statements. These forward-looking
statements reflect our present assessments and assumptions, and are subject
to risks and uncertainties. Our business activities, success, strategy and
results are influenced by various factors, over many of which we have no
control and which may cause actual results and trends to substantially
deviate from our forward-looking statements. These factors include, for
instance, the number of actual customer orders received by vwd; the extent
of market demand for information, communications and technology solutions
in the securities business; the point in time when customers take final
possession of products; the situation on the financial market and the
financing options of vwd; the general market terms for financial services;
the macroeconomic environment; cancellations, changes or delays in product
deliveries; limits to development capacity; lengthy sales and qualifying
cycles; problems in the development process; increased competition;
non-acceptance by vwd's target market of new products and services;
challenges to integrating important acquisitions; exchange-rate
fluctuations; interest-rate fluctuations and changes in available interest
terms; delays in the development and marketing of new products; and a
deterioration in the general economic situation as well as numerous other
factors not limited to those that vwd has mentioned in public reports and
announcements in the past. Forward-looking statements contained in this
interim statement are based on the present assessments and forecasts of the
Management Board as well as the information available to it. These
forward-looking statements are valid at the time of publication. vwd
assumes no responsibility for updating or correcting such forward-looking
statements in light of new information, unexpected developments or for any
other reason unless under express legal obligation to do so.
Frankfurt am Main, November 2010
vwd Vereinigte Wirtschaftsdienste AG
The Management Board
Contact 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
vwd Vereinigte Wirtschaftsdienste AG
Tilsiter StraÃe 1
60487 Frankfurt am Main
Regulated Market Frankfurt, General Standard
ISIN: DE 000 520470 5
Profile vwd group:
vwd group is a leading workflow solution provider for the European
financial markets. The group concentrates on providing superior solutions
around the investment process for money managers, wealth managers,
advisors, media, corporate and private investors.
With the company's content, software solutions, business process
outsourcing services as well as multi-media distribution systems, it helps
its customers to make better informed decisions, increase transparency and
improve profitability. vwd's business is driven by innovation, flexibility,
customer centricity and strong commitment to local needs. For more than 60
years the group enables its customers to become more successful and provide
better service to their clients. The group's best-known brands are:
finanztreff.de, vwd fonds service, vwd market manager, vwd portfolio
manager, vwd PortfolioNet, TradeLink and Tai-Pan. With around 430 employees
in 15 locations and 5 countries vwd is a public company, listed at the
Frankfurt Stock Exchange.
11.11.2010 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: vwd Vereinigte Wirtschaftsdienste AG
Tilsiter StraÃe 1
60487 Frankfurt am Main
Deutschland
Internet: http://www.vwd.com
End of Announcement DGAP News-Service
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DGAP-IRE: vwd hurt by financial industry's unwillingness to invest - new phase of growth planned for 2011
| Source: EQS Group AG