Corporate News / Frankfurt - Main / September 11, 2018

FinTech Group AG continues to grow profitably - EBITDA increases by 42%

  • Operating KPIs significantly exceeded:

    Number of new B2C-customers increases by 17 % Transaction volume increases by 20 %

  • Revenue grows by 18% to reach EUR 58.5 million EBITDA increases by 42% to reach EUR 18.4 million Half-year net profit grows by 35% to reach EUR 9.4 million, despite one-off expenses for large joint venture project in Austria

  • Group expects even stronger second half-year: Net profit forecast for 2018 is affirmed

Frankfurt/Main - FinTech Group AG (German securities code: FTG111, ISIN: DE00FTG1111, ticker symbol: FTK.GR) continues its course of profitable growth with an impressive first half of 2018.

Once again it was mainly FinTech Group Bank's flatex brand, one of Europe's fastest growing online broking businesses, which assured increased profits. Despite significant one-off expenses for the large joint venture project between flatex Austria and Austrian Post, the 2018 half-year net profit increased by 35% to reach EUR 9.4 million. Thus, FinTech Group achieved 40% of its forecasted 2018 profit in the first half-year. Management therefore re-affirmed the full-year 2018 forecast of a net profit of EUR 24 million, EBITDA of EUR 40 million, based on revenues in excess of EUR 120 million.

"FinTech Group AG's operating strength, gaining 40,000 new customers in B2C alone - more than 21,000 of which in the first half of 2018 -, along with an even higher increase in the number of executed transactions, results in an earnings power which gives us the confidence to re-affirm our guidance for 2018", says Frank Niehage, FinTech Group AG's CEO, emphasizing the positive outlook for the second half-year. "Our joint venture with Austrian Post brings us a decisive step closer to our goal to become Europe's largest provider of financial technology."

Since September 1, 2018, online broker flatex has been offering its German customers the largest selection of leveraged products (ETP: Exchange Traded Products) in a unique product architecture with attractive terms, and will thereby further increase its market leadership in the trading of certificates and leveraged products (ETP). Across the Group, the number of serviced B2C customers increased to 275,000 in the first six months of 2018 (at 12/31/2017: around 254,000). The number of transactions executed by the Group rose by more than 20%, compared with the first half-year

  • 2017, to 6.6 million, despite a generally low level of market volatilities. Also in the first half-year

  • 2018, the amount of customer assets under management increased by around 8% to reach EUR 12.1 billion (first half-year 2017: EUR 11.2 billion).

In the first half-year of 2018, significant revenue providers for the Group were net commission income of EUR 33.0 million (first half-year 2017: EUR 27.4 million), revenues from the provision of IT services of EUR 5.2 million (first half-year 2017: 5.3 million), and net interest income of EUR 5.0 million (first half-year 2017: EUR 3.8 million).

"We have continued now on our course of growth and profitability since 2015, half-year after half-year, without any dents to our bottom line. It remains our goal to grow, not at the expense of our profitability, but rather to prove that growth can be attained while maintaining profitability. This year we want to again achieve a pre-tax return on equity in excess of 25%", says Muhamad Chahrour, FinTech Group AG's CFO, confirming the clear goals of the Group.

The highly profitable "Financial Services" segment, which includes online brokers flatex und ViTrade, achieved EBITDA of EUR 15.1 million in the first half of 2018 (first half-year 2017: EUR 9.4 million), based on revenues of EUR 52.3 million (first half-year 2017: EUR 41.4 million).

The "Technologies" segment, which includes all of the Group's IT services, achieved EBITDA of EUR 3.3 million in the first half-year 2018 (first half-year 2017: EUR 3.6 million), based on revenues of EUR 16.4 million (first half-year 2017: EUR 17.8 million).

The disclosed half-year interim report 2018 will be available in German and English at the website:www.fintechgroup.comand could be downloaded at:https://www.fintechgroup.com/en/investor-relations/financial-information/

About FinTech Group AG

FinTech Group AG (WKN: FTG111, ISIN: DE000FTG1111, Ticker: FTK.GR) owns a modern smart bank, that offers innovative financial technology, an own core banking system and a regulatory liability umbrella.

The online broker flatex is the cash cow and offers an advanced, in-house technology service at low cost. This makes flatex the fastest growing trading platform in Europe.

This smart technology scales easily, which is why it is offered successfully to B2B customers. Many well-known institutes as well as the state infrastructure use these vital services. It helps startups and business models who need a banking licence through this model of white label banking to achieve rapid success.

As a provider of smart banking solutions, despite bank consolidation, low interest rates and digitization, FinTech Group AG is ideally positioned for further growth and well on its way to becoming Europe's leading provider of financial technology.

Disclaimer

This release may contain forward-looking statements and information that use words such as 'expect', 'want', 'anticipate', 'intend', 'plan', 'believe', 'seek', 'estimate', 'will' or similar Terms are recognizable. Such forward-looking statements are based on our current expectations and assumptions that may involve a number of risks and uncertainties. The actual results achieved by FinTech Group AG may differ significantly from the statements in the forward-looking statements. FinTech Group AG undertakes no obligation to update these forward-looking statements or to correct them in any other than expected development.

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FinTech Group AG published this content on 11 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 September 2018 05:16:04 UTC