DGAP-News: JDC Group AG: JDC Group defies Covid-19 with significant increase in revenues and profit

JDC Group defies Covid-19 with significant increase in revenues and profit

- Outstanding fourth quarter in platform business results in double-digit growth over 2020 as a whole

- Preliminary figures for 2020 as a whole show revenues up more than 10 percent at around EUR 123 million, with stable cost structure

- Preliminary full-year EBITDA for 2020 up by around 22 percent at around EUR 5.1 million - or by around 40 percent at EUR 5.8 million after adjustment for non-recurring expenses

- Further significant growth and higher profits expected in 2021 and beyond

JDC Group AG (ISIN DE000A0B9N37) concluded its 2020 financial year with very encouraging fourth quarter results despite the Covid-19 pandemic. Based on the preliminary, unaudited financial figures published today, revenues for the year 2020 as a whole were up by around 10 percent, at EUR 122.8 million (2019: EUR 111.5 million). After adjustment for non-recurring expenditure of EUR 0.7 million for the head office move, remote working infrastructure and severance packages, the earnings before interest, tax, depreciation and amortisation (EBITDA) were up by 39.3 percent, at EUR 5.8 million (2019: EUR 4.2 million). The unadjusted EBITDA increased by 22.5 percent to EUR 5.1 million (2019: EUR 4.2 million). Earnings before interest and tax (EBIT) were also positive in 2020, at EUR 0.5 million (adjusted: EUR 1.2 million), and thus also significantly better than the previous year (2019: EUR -0.1 million).

The fourth quarter saw a 13.9 percent increase in revenues to EUR 36.4 million (fourth quarter 2019: EUR 31.9 million). Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased significantly to EUR 1.9 million (unadjusted: EUR 1.4 million / fourth quarter 2019: EUR 0.6 million). In the Advisortech segment revenues were up by as much as 19.9 percent, at EUR 30.9 million. EBITDA in this segment also increased significantly to EUR 1.4 million (fourth quarter 2019: EUR 0.5 million).

The Advisortech segment, which covers the JDC platform technology, was also the main driver of the positive performance over the year as a whole. Revenues here increased by around 11 percent to EUR 102 million. Adjusted EBITDA was up by around 30.5 percent, at 6.3 million, while unadjusted EBITDA rose by 25.3 percent to EUR 6.0 million.

In the Advisory segment, which provides advisory services for retail customers, the effects of the lockdown were noticeable in the fourth quarter. This resulted in a slowdown in growth in this segment to around 3 percent, with 2020 revenues amounting to EUR 30.9 million. The adjusted EBITDA showed a slight increase, at EUR 1.5 million compared with EUR 1.3 million in 2019 (unadjusted: EUR 1.1 million).

In addition to the increase in consolidated gross profit, the improvement in the results for the Group is mainly attributable to the fact that the non-personnel cost structure remained almost unchanged despite the growth. This demonstrates the success of the automation efforts in the administration area of the JDC platform.

Revenues, EBITDA and EBIT on a preliminary basis were as follows:

	Q4 2020 [mEUR]	Q4 2019 [mEUR]	Change [%]	FY 2020 [mEUR]	FY 2019 [mEUR]	Change [%]
Revenues	36,4	31,9	13,2%	122,8	111,5	10,2%
thereof Advisortech	30,9	25,7	19,9%	102,6	92,3	11,2%
thereof Advisory	9,6	10,6	-9,9%	30,9	29,9	3,2%
EBITDA	1,4	0,6	>100%	5,1	4,2	22,5%
EBITDA-Margin %	3,8	1,9		4,1	3,8
EBIT	0,2	-0,5	>100%	0,5	-0,1	>100%
EBIT-Margin %	0,5	-1,6		0,4	0,0

 

Ralph Konrad, CFO of the JDC Group AG, commented: 'We are entirely satisfied with how the company has performed in 2020. We have now reached the size of undertaking at which further increases in revenues have a disproportionately positive impact on profits, and this is shown clearly in the figures for 2020. Without the Covid-19 restrictions we could have achieved even better results, and this makes us very confident about the near future.'

Dr Sebastian Grabmaier, CEO of the JDC Group AG, added: 'Our acquisition of well-known platform customers from all areas, most recently Finanzguru, Mediolanum and the insurance group Provinzial, shows that the JDC platform technology is setting standards in the processing and administration of insurance contracts and data. For the coming years, therefore, we have ambitious plans: profits will grow further through a sustained increase in revenues accompanied by only slightly rising costs. By 2025 at the latest, we plan to double JDC Group's 2020 revenues and thus multiply the 2020 EBITDA figure. In the long term we want to develop JDC into the leading insurance platform in Europe.'

In 2021, on the basis of collaborations already in place, the company expects revenues to grow to between EUR 135 million and EUR 142 million and EBITDA to rise to more than EUR 7 million.

The company plans to publish the final, audited figures for the financial year 2020 on 31 March 2021. Further information on JDC Group AG can be found at www.jdcgroup.de.

About JDC Group AG

JDC Group AG (ISIN: DE000A0B9N37) offers a digital platform for insurance companies, mutual funds and all other financial products and services under the brands Jung, DMS & Cie., allesmeins and Geld.de. By offering the full product range and complete data and document supply of all product providers in the financial market, it creates through its vision systems and interfaces the perfect workplace for financial intermediaries of all kinds (brokers, agents, corporate brokers, banks, tied agent networks, FinTechs) and the first real financial home for financial service customers. Via smartphone app, tablet or PC, customers and intermediaries receive a complete overview of the individual insurance and fund portfolio, simple online tools and transfer processes as well as a complete market comparison, so that customers and consultants can optimize insurance cover and pension plans easily and in an ideal performance-cost ratio. More than 300 well-trained consultants under the FiNUM brand complement the platform offering for demanding and upscale private customers. With more than 16,000 connected platform users, around 1.5 million customers, annual sales of around two billion euros, a fund portfolio of more than five billion euros and annual insurance premiums of almost 800 million euros, we are one of the market leaders in the German-speaking region. JDC focuses on sustainability and is committed to the ESG criteria: As a digitalization service provider, JDC helps to save many tons of paper and make everyday life of financial intermediaries and customers easier.

Disclaimer

The members of the Management Board of JDC Group AG hold stakes in JDC Group AG and have a personal interest in the type and content of the information given in this announcement.

 

Contact:
JDC Group AG

Ralf Funke
Investor Relations
Phone: +49 611 335322-00
Email: [email protected]