Avaloq maintains momentum with massive earnings rise
Adjusted EBITDA increased 257% to CHF 36.3 million ($37.6 million)
Avaloq has reported impressive earnings growth for the first half of 2017 due to investment in its banking suite and the “accelerating trend of the market” towards digital, Software-as-a-Service (SaaS) and transaction processing services.
For H1 2017, the firm says compared to the same period last year, adjusted EBITDA increased 257% to CHF 36.3 million ($37.6 million). Net cash provided by operating activities increased by 272% to CHF 62 million ($64.3 million). Total revenue couldn’t quite match these gigantic percentages, as that increased by 3% year-on-year to CHF 253.1 million ($262.6 million).
Francisco Fernandez, group CEO and chairman of the board of Avaloq, says it “significantly increased profitability, reduced total spending” and “with such a wind in our sails, we are very well equipped to take advantage of growth opportunities”.
These latest healthy figures follow on from the 2016 fiscal year, when it reported increases in revenue and earnings – with three new customers and 28 go-live projects completed.
For H1 2017, there were 13 go-lives at banks including Axion Swiss Bank and BT Financial Group.
With Avaloq in a merry mood, it also pointed to the deal in June when private equity (PE) firm Warburg Pincus acquired a 35% shareholding from existing shareholders – a first step towards a potential public listing. The transaction values Avaloq in excess of CHF 1 billion ($1 billion).
Avaloq says “for the first time in its history” it obtained a rating with Standard & Poor’s as well as Moody’s. Standard & Poor’s assigned Avaloq with the credit rating grade “B”, Moody’s with a “B2”. Both agencies classify Avaloq’s outlook as “stable”.
Headquartered in Switzerland, Avaloq has branches in Berlin, Edinburgh, Frankfurt, Hong Kong, Leipzig, London, Lugano, Luxembourg, Madrid, Manila, Nyon, Paris, Singapore, Sydney and Zurich.
Banking Technology Awards 2017 are now open for entry!
Know any innovative products, inspirational projects, skilled teams or visionary leaders that deserve a special recognition this year? Nominate them for a Banking Technology Award!
Deadline for submitting the nominations is 25 August 2017.
