- Sales rose adjusted for currencies by 20 per cent to CHF 74.9 million.
- For the first time, international sales achieved 50 per cent of total sales.
- EBITDA almost doubled to CHF 7.3 million.
- Free cash flow reached CHF 7.0 million.
- The mid-term goals of the Group were increased in view of the positive results.
Thomas Avedik, CEO of the CREALOGIX Group, says:
"We see that expenditures for product optimisations and developments are worthwhile and our latest generation of FinTech-products correspond to current digital market needs of banks."
Consequently, for the first time the share of sales was distributed equally with 50 per cent in Swiss and 50 per cent in international customers. EBITDA almost doubled to CHF 7.3 million, compared to CHF 3.7 million in the same period the previous year. The EBITDA margin was 10 per cent. The Group is financially healthy and well-financed. Free cash flow reached CHF 7.0 million and the equity ratio was 37 per cent.
From the first e-banking 20 years ago into the digital future
The Group's success story began with its co-operation with Credit Suisse in autumn 1996 and the launch of the first e-banking "DirectNet" in Switzerland in April 1997. Web-based access to account information from home was the beginning of the digitalisation of banking product offers. Today's society is mobile and would like to have access to accounts anytime and anywhere. Thanks to CREALOGIX's latest generation of mobile banking, this is now a reality. For example, from this year customers of the private bank Julius Baer only need a smartphone to perform all banking transactions via the jointly developed mobile app.
Banks are also faced with the challenge of digitalising their core business and integrating new business models. The "Digital Banking Hub" launched by CREALOGIX enables them to exploit the new technologies as business opportunities. It allows them to integrate specific offers from fintechs in their complex IT landscape and connect them with existing solutions. Today, numerous financial institutions such as Raiffeisen, VZ Depot Bank, Baloise Bank SoBa, the Swiss private bank Notenstein La Roche or Société Générale profit from these opportunities. For the German financial service provider MLP the architecture of the hub provides the foundation for the further expansion of their online services.
The solution “Digital Financial Advisory” fits optimally in the digital landscape. With this, banks adjust their advisory process, services offered and expenses incurred to the needs of a respective customer group. The product provides the customer advisor with lasting support when giving advice and also during the customer interview. Furthermore, it reduces costs for the implementation of regulatory requirements such as MiFID II. Together with other banks, the Erste Bank Oesterreich (EBÖ), the leading bank in the Austrian Sparkasse Group, has reinforced its personal and digital customer relationships using this advice solution.
Corporate customers also want to benefit from digitisation. For instance, on the basis of the CREALOGIX software “Nova Business”, Credit Suisse developed the new multi-banking corporate customers portal. With it, the bank meets the raised requirements of business customers for simplified payments and an interbank liquidity management.
Outlook
Despite the continuing uncertainties in the current market environment (Brexit, geopolitical imponderables, etc.) that could delay the investment decisions of customers, the CREALOGIX Group expects business to be successful for 2017/2018 with double digit sales growth and further increases in EBITDA.
Due to the gratifying business development in recent years, the CREALOGIX Group has raised its mid-term targets with international business to amount to 70 per cent to total sales and EBITDA to reach 15 per cent. The Board of Directors plans to suggest to the Shareholder's Meeting on 30 October 2017 a distribution from premium amounting to CHF 0.50 per share. In this way, it is emphasising the strength and positive yield outlook for the future.
