In the first three quarters of 2017, SimCorp generated revenue of EUR 229.2m, an increase of 10.4% (10.9% measured in local currencies) compared with restated* figures for the first nine months last year.
EBIT for the nine months was EUR 43.0m compared with EUR 43.3m in restated 2016 figures, a decrease of 0.5%. Currency fluctuations impacted EBIT positively by EUR 0.8m.
EBIT margin was 18.8% (18.3% measured in local currencies) compared with 20.8% in the first nine months of 2016 (restated).
The revenue mix for the first nine months of the year has been skewed towards Professional Services that grew 28.2%. License sales to existing customers also showed healthy growth with 11.4% and maintenance income grew 6.6%. However, new subscription licenses decreased 36.2%. The changed business mix compared to the year before led to a lower EBIT margin due to higher costs of delivering Professional Services.
Net profit for the first nine months was EUR 31.1m compared with EUR 32.7m in restated 2016 figures.
Free cash flow was EUR 36.1m compared with EUR 51.8m in the first nine months of 2016. The lower free cash flow of EUR 15.7m was primarily related to the gradual change from perpetual license sales to subscription based contracts, increased current assets related to the growth in Professional Services, and higher payment of income taxes.
Total order intake from new licenses and add-on licenses for the first nine months was EUR 32.1m compared with EUR 44.4m in 2016. Three new SimCorp Dimension clients in APAC, Denmark and North America were added in Q3.
At 30 September 2017, EUR 291m of the 2017 revenue had been contractually secured, 11% higher than at the same time last year.
SimCorp maintains its expectations for reported revenue growth between 9% and 14% measured in local currency for 2017, whereas expectations for EBIT margin measured in local currencies is narrowed to be between 24% and 26% (previously 24%-27%), reflecting an increased share of revenue from Professional Services.
Klaus Holse, SimCorp CEO comments: “We continue to see strong demand for Professional Services from customers added in the last two years as well as from long term customers. Further, I am pleased that we have welcomed three new customers in Q3 and another two so far in Q4. We have a solid pipeline of potential customers and demand for additional licenses from existing customers.”
SimCorp’s Executive Management Board will present the report at a conference call today at 2:00 pm (CET). Please use any of the following phone numbers to dial in to the conference call:
|From Denmark:||+45 3271 1658|
|From USA:||+1 646 254 3365|
|From other countries:||+44(0)20 3427 1908|
|Pin code to access the call:||9169767|
At the end of the presentation there will be a Q&A session.
It will also be possible to follow the presentation via this link: https://edge.media-server.com/m6/p/u9ou62rp.
The presentation will be available prior to the conference call via SimCorp’s website www.simcorp.com.