JDC Group AG: JDC Group increases revenues and profits despite COVID-19 crisis
DGAP-News: JDC Group AG
/ Key word(s): Half Year Results
JDC Group increases revenues and profits despite COVID-19 crisis - Revenues grew by around 12 percent to EUR 58.8 million in the first six months of 2020 - EBITDA was up by roughly 10 percent and stood at EUR 3.1 million at the end of the first half year despite extraordinary expenditures occasioned by the coronavirus crisis - Success of digital strategy: further outsourcing contracts signed Figures published today on the performance of JDC Group AG (ISIN DE000A0B9N37) in the first six months of 2020 confirm the success of the group's digital strategy. Revenues for the first half are around 12 percent higher year on year, at EUR 58.8 million (first six months of 2019: EUR 52.5 million). The revenues of the Advisortech segment are up by around 12 percent, at EUR 49.6 million. The Advisory segment has increased its revenues by approximately 9 percent to EUR 14.0 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by around 10 percent in the first half year of 2020 to EUR 3.1 million (first six months of 2019: EUR 2.86 million), although the second quarter was impacted by extraordinary expenditures as a result of the coronavirus pandemic, which caused EBITDA to fall slightly in the second quarter to EUR 0.94 million (second quarter 2019: EUR 1.09 million). Extraordinary expenditures were mainly incurred by the information technology and operations areas for setting up and implementing the infrastructure required for allowing employees to work from their homes, and for moving the JDC head office to a new location. Also in the second quarter, the number of orders in relation to new business significantly exceeded those in the same period of the previous year, although during that time extensive social distancing measures led to the cessation of a large number of social activities and temporary closure of many businesses. The lack of activity in the occupational pension products and property businesses due to the COVID-19 crisis was more than compensated for by the strength of the investment and non-life insurance business, which enabled the group to achieve an increase in revenues of almost 7 percent despite the crisis. The number of contracts transferred to the JDC insurance platform in the first half of the year doubled in comparison with the same period of the prior year. However, these contracts will only start to impact revenues and income of the platform in the coming months. Sparkasse Bremen is the third key account acquired by the JDC Group in connection with an outsourcing project since the beginning of financial year 2020, after Boehringer Ingelheim and Nürnberger Versicherung. With its bancassurance platform, JDC will be the premium distribution partner of s mobile Versicherungsmakler GmbH and will use its administrative and sales support technology to take over the entire processing, settlement and accounting processes for the insurance business of Sparkasse Bremen. With its approximately 80 locations across the metropolitan area and more than 400,000 retail customers in addition to over 26,000 corporate customers, Sparkasse Bremen is one of the largest and most innovative savings banks in Germany. Commenting on the figures, Ralph Konrad, CFO of the JDC Group, said: 'Against the backdrop of the coronavirus crisis, we are very satisfied with the performance in the first half of the year. Our crisis scenarios initially painted a much more conservative picture at the start of the crisis. The fact that we have been able to grow and to improve our half-year profits - even during a very difficult second quarter - shows that our digital processes strategy is a success and that we are on a steady growth path.' CEO Dr Sebastian Grabmaier added: 'In the coming weeks and months we intend to go live with further outsourcing projects based on our now market-leading insurance platform. After the successful acquisition of Sparkasse Bremen, we will acquire further key accounts. This will reinforce our reputation as the long-term number one choice for processing and settlement of retail customer insurance transactions for both small and large brokers, banks, tied agents and insurance distribution companies and agents.' The key figures for the second quarter and the first half of 2020 are as follows:
Despite the impacts of the COVID-19 crisis has so far had on its business, JDC Group AG confirms its guidance for the financial year 2020 with revenues between EUR 125 million and EUR 132 million and further increases in EBITDA, provided that there is no renewed lockdown in the area of its business due to COVID-19. The interim report for the first half and second quarter of 2020 as well as further information on JDC Group AG can be found at www.jdcgroup.de. The Letter to Shareholders for the 3rd quarter will be published on 19 November 2020. About JDC Group AG Disclaimer:
Contact: JDC Group AG Ralf Funke Investor Relations Phone: +49 611 335322-00 Email: funke@jdcgroup.de
20.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | JDC Group AG |
Söhnleinstraße 8 | |
65201 Wiesbaden | |
Germany | |
Phone: | +49 (0) 611 335322-00 |
Fax: | +49 (0) 611 335322-09 |
E-mail: | info@jdcgroup.de |
Internet: | http://www.jdcgroup.de |
ISIN: | DE000A0B9N37 |
WKN: | A0B9N3 |
Indices: | Scale 30 |
Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Hamburg, Stuttgart, Tradegate Exchange |
EQS News ID: | 1120907 |
End of News | DGAP News Service |
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1120907 20.08.2020