Quarterly Report • Nov 11, 2013
Quarterly Report
Open in ViewerOpens in native device viewer
Berlin, 4 November 2013
| Financial performance (€'000) | 1 Jan - 30 Sept 2013 1 Jan - 30 Sept 2012* | Change | |
|---|---|---|---|
| Continuing operations | |||
| Revenue | 75,717 | 62,903 | 20% |
| Gross profit | 37,129 | 34,249 | 8% |
| Earnings before interest, tax, | |||
| depreciation and amortisation (EBITDA) | 7,209 | 7,202 | 0% |
| Earnings before interest and tax (EBIT) | 4,139 | 3,655 | 13% |
| EBIT margin | |||
| (EBIT as a percentage of gross profit) | 11.1 | 10.7 | 4% |
| Earnings per share (€) | 0.57 | 0.34 | 68% |
| Hypoport Group | |||
| Net profit (loss) for the year | 3,594 | 1,543 | 133% |
| attributable to Hypoport AG shareholders | 3,513 | 1,550 | 127% |
| Earnings per share (€) | 0.57 | 0.25 | 128% |
| Continuing operations | 1 July – 30 Sept 2013 1 July – 30 Sept 2012* | Change | |
| Revenue | 27,053 | 20,973 | 29% |
| Gross profit | 14,049 | 11,041 | 27% |
| Earnings before interest, tax, | |||
| depreciation and amortisation (EBITDA) | 4,442 | 1,851 | 140% |
| Earnings before interest and tax (EBIT) | 3,418 | 629 | 443% |
| EBIT margin | |||
| (EBIT as a percentage of gross profit) | 24,3 | 5,7 | 327% |
| Earnings per share (€) | 0.34 | 0.03 | 1,033% |
| Hypoport Group | |||
| Net profit (loss) for the year | 2,219 | 26 | >1,000% |
| attributable to Hypoport AG shareholders | 2,128 | -11 | >1,000% |
| Earnings per share (€) | 0.34 | 0.00 | >1,000% |
| Financial position (€'000) | 30 Sep 2013 | 31 Dec 2012 | |
| Current assets | 34,063 | 35,283 | -3% |
| Non-current assets | 36,862 | 35,464 | 4% |
| Equity | 33,468 | 29,844 | 12% |
| attributable to Hypoport AG | |||
| shareholders | 33,157 | 29,614 | 12% |
| Equity ratio (%) | 47.2 | 42.2 | 12% |
| Total assets | 70,925 | 70,747 | 0% |
* The comparative prior-year tax figures have been adjusted and are explained in section 5 of the notes to the interim consolidated financial statements "Comparative figures for 2012"
Since 2008, national economies around the world have been shaken by the actions of financial service providers. The intervening years have seen national, European and international political institutions seeking to tighten the regulation of financial market participants in order to restore the integrity of markets. Since then, banks, insurers and intermediaries have been forced to set aside a growing proportion of the financial resources from their operating activities and to use these funds specifically to meet regulatory requirements. At the same time, political institutions themselves have increasingly been getting into trouble. Scandals surrounding international organisations, communication errors committed by central banks, and the budgetary and debt problems facing a number of national governments are increasingly affecting the stability of the economic system. While many market participants have enhanced their resilience in recent years, governments and regulators themselves are exacerbating market uncertainty. As far as the financial services industry is concerned, this means that not only the players but also the rules of the game are now unpredictable.
Despite operating on this highly uncertain playing field, the Hypoport Group managed to generate double-digit revenue in the first nine months of 2013. Its revenue for the first three quarters of the year rose by 20 per cent to €75.7 million, while its earnings before interest, tax, depreciation and amortisation (EBITDA) located with €7.2 million on previous year's level. Although the start of the year had proved tough, Hypoport achieved its best-ever quarterly results from July to September on the back of record figures in its Financial Service Providers and Institutional Clients business units as well as the rapidly progressing restructuring of its insurance business.
The Private Clients business unit returned to profit in the third quarter. The prevailing low-interest-rate environment boosted growth in the loan brokerage business, which substantially expanded its share of the building finance market. As in previous quarters, the other banking products on offer – such as instant-access deposits and current accounts – continued to compete with the artificially cheap money provided by the European Central Bank. The insurance market has again been shaken in recent weeks by regulatory proposals for life insurance products, which have fuelled huge uncertainty in this already fragile market. This in turn has caused the volume of insurance transactions. Viewed from a cost perspective, the organisational and process-related restructuring of this business yielded the anticipated profitability improvements.
The Financial Service Providers business unit continued to grow across all product segments in the third quarter. The volume of transactions processed on this marketplace for financial products topped €8 billion for the second consecutive quarter. These record results were attributable to the even stronger partner base as well as the economic recovery, attractive interest rates and rising real wages. The systematic expansion of the platform's functionality accelerated the process of winning new partners and integrating existing ones. The growing proportion of interest rates that are fixed for long periods continued to strengthen this business unit's earnings.
The Institutional Clients business unit achieved its best-ever quarterly results since it was set up back in 1954. A large volume of loans was brokered on the back of the modest rise in interest rates. Business was also boosted by the changes made to the KfW development bank loan programme for investing in energy-efficiency measures. The strong performance of this business was underpinned by the broad customer base. This unit managed to significantly increase not just the number of borrowers but also that of lenders in the third quarter.
We expect market conditions in financial services to remain tough and the level of uncertainty to remain high throughout the rest of this year. Despite this challenging environment, however, we are optimistic about the prospects for the Hypoport Group going forward. For 2013 as a whole we therefore plan to achieve double-digit revenue growth and expect our earnings to return to their record levels of previous years. We are forecasting double-digit revenue and earnings growth for next year.
Ronald Slabke Chief Executive Officer
Hypoport's shares delivered a positive overall performance in the third quarter of 2013. Starting the period at €7.22 on 1 July, the share price initially fell to its third-quarter low of €7.03 on 9 July before hitting a high of €8.48 for the period on 30 July. Over the further course of the quarter the share price remained more or less flat, mainly hovering above the €8.00 mark.
The Company generated earnings of €0.34 per share in the third quarter of 2013, having just managed to break even in the corresponding period of 2012. Its continuing operations achieved earnings of €0.34 per share (Q3 2012: €0.03), while its discontinued operations broke even (Q3 2012: loss of €0.03 per share). The Company therefore achieved earnings of €0.57 per share in the first nine months of 2013, having posted earnings of €0.25 per share in the corresponding period of last year. Its continuing operations contributed earnings of €0.57 per share to this result (Q1-Q3 2012: €0.34), while its discontinued operations broke even (Q1-Q3 2012: loss of €0.09 per share).
The daily volume of Hypoport shares traded in the third quarter of 2013 averaged €13,909.34. The highest average daily turnover was in July (2,570 shares), followed by August (1,313 shares). The month with the lowest daily turnover was September, when an average of only 1,219 Hypoport shares changed hands.
The free float in Hypoport's shares amounts to 36.8 per cent.
Breakdown of shareholders as at 30 September 2013
The table below shows the research studies published on Hypoport's shares in the first nine months of 2013.
| Analyst | Recommendation | Target price | Date of recommendation |
|---|---|---|---|
| Montega | Buy | € 10.50 | 6 August 2013 |
| CBS Research | Buy | € 11.00 | 5 August 2013 |
| Montega | Buy | € 10.50 | 7 May 2013 |
| CBS Research | Buy | € 11.00 | 6 May 2013 |
| CBS Research | Buy | € 11.90 | 12 March 2013 |
| Montega | Hold | € 9.80 | 12 March 2013 |
| Montega | Hold | € 9.80 | 13 February 2013 |
| Solventis | Buy | € 12.50 | 30 January 2013 |
| Montega | Hold | € 9.80 | 28 January 2013 |
Designated sponsors enhance a share's liquidity by quoting binding prices at which they will buy and sell the share. The designated sponsor for Hypoport AG is Close Brothers Seydler Bank AG, Frankfurt am Main.
As a publicly traded company we are required to make ad-hoc disclosures of facts that could influence our share price. No ad-hoc disclosures were published in the third quarter of 2013. Ad-hoc disclosures can be downloaded from our website at www.hypoport.com.
No notifications of directors' dealings were published in the third quarter of 2013.
7
Interim report of Hypoport AG for the period ended 30 September 2013
| Security code number (WKN) | 549 336 |
|---|---|
| International securities identification number (ISIN) |
DE 000 549 3365 |
| Stock exchange symbol | HYQ |
| Type | No-par-value shares |
| Notional value | €1.00 |
| Subscribed capital | €6,194,958,00 |
| Stock exchanges | Frankfurt |
| XETRA | |
| Market segment | Regulated market |
| Transparency level | Prime Standard |
| Membership of indices | CDAX |
| Classic All Share | |
| DAXsector All Financial Services | |
| DAXsubsector Diversified Financial | |
| GEX | |
| Prime All Share | |
| Performance | |
| Share price as at 1 July 2013 | €7.22 (Frankfurt) |
| Share price as at 30 September 2013 | €8.10 (Frankfurt) |
| High in third quarter 2013 | €8,48 (30 July 2013) |
| Low in third quarter 2013 | €7.03 (9 July 2013) |
| Market capitalisation | €50.2 million (30 September 2013) |
| Trading volume | €13.909,34 (daily average for third quarter of 2013) |
The performance of the European and German economies was cautiously positive. This caution stemmed from the fact that high levels of uncertainty continued to curb growth and shift the growth dynamics prevailing around the globe. In October the International Monetary Fund (IMF) lowered its forecast for global economic growth in 2013 to 2.9 per cent. While growth in the Western nations is gradually recovering from the crisis, growth in the emerging markets has slowed. The US Federal Reserve's mere announcement of its plans to
exit its loose monetary policy depressed global economic growth briefly in the third quarter. The IMF expects Europe's economic output to contract by 0.4 per cent, which is 0.1 percentage points more optimistic than it was in July of this year. Nonetheless, the European Central Bank (ECB) kept its main refinancing rate for commercial banks on hold at an all-time low of 0.50 per cent. The reasons given for this decision were the sluggish performance of the eurozone economy – especially in southern Europe – and the fact that inflation was around 2 per cent and, therefore, within its target range.
The German Institute for Economic Research (DIW Berlin) expects Germany's gross domestic product (GDP) to have increased by only 0.2 per cent in the third quarter of this year following its strong growth in the second quarter. According to the DIW Economic Barometer, this weaker growth can be attributed to the lower levels of orders currently on hand in German industry. The main driver of growth here has been the strong domestic economy, which has been boosted by consumer spending. Rising real wages, low interest rates and high employment levels have strengthened Germans' personal finances. The country's economic activity has been hampered not only by the uncertainty around the debt situation of the United States and crisis-stricken eurozone countries but also by the unresolved political situation in Germany.
Having risen since May, long-term interest rates stayed at their slightly higher level in the third quarter. Compared with their long-run average of 6.5 per cent, however, they are still historically low. This meant that the rates available to savers remained highly unattractive, while the austerity policies pursued by the ECB continued to assist mortgage customers.
The total volume of mortgage finance made available in the German market grew substantially, especially in July. Bundesbank statistics reveal that the total value of this business in the first eight months of 2013 came to €136.2 billion, which was an increase of 5.2 per cent on the corresponding prior-year figure (total volume of mortgage finance provided from January to August 2012: €129.5 billion).
The total volume of personal loans made available in Germany during the first eight months of this year fell slightly year on year to €42.7 billion (total value of personal loans provided in the German market from January to August 2012: €44.4 billion).
Total volume of private mortgage mortgage finance and personal loans (source: Deutsche Bundesbank); *Q3 2013 June interpolated
Building finance products have remained highly attractive this year, generating strong demand. The total volume of building finance made available in the German market during the first eight months of 2013 came to €71.5 billion. This represents an increase of 6.9 per cent on the corresponding prior-year figure (total value of building finance provided in the German market from January to August 2012: €66.8 billion).
According to Bundesbank statistics, the total funds invested in fixed-term, instant-access and savings accounts amounted to €1,711.0 billion at the end of August 2013, which represents a modest year-on-year increase of 2.4 per cent (31 December 2012: €1,671.0 billion). The low-interest-rate environment, tighter regulation and unsettled consumer sentiment continued to hamper the insurance market in the third quarter of 2013.
In the first nine months of 2013 the Hypoport Group raised its revenue by 20.4 per cent year on year from €62.9 million to €75.7 million. The revenue generated in the third quarter of 2013 advanced by 29.0 per cent to €27.1 million (Q3 2012: €21.0 million). The method used to calculate sales commissions paid to mortgage finance brokers was amended with effect from 1 April 2013. This increased both the revenue and the agency commissions reported as at 30 September 2013 and
Revenue Hypoport Group (€ million)
for the third quarter of 2013 by €4.0 million and €1.4 million respectively. Excluding this change, year-on-year revenue growth would be 22.0 per cent for the third quarter of 2013 and 13.9 per cent for the first nine months.
Selling expenses rose at a much higher rate than revenue in the first nine months of 2013 owing to a partial shift from higher-margin to low-margin revenue models. Consequently, the gross profit earned in the first three quarters of 2013 rose by 8.4 per cent from €34.2 million to €37.1 million. The gross profit generated in the third quarter of 2013 grew by 27.2 per cent – almost in line with revenue – from €11.0 million to €14.0 million.
The figures for revenue and selling expenses described below include revenue and selling expenses shared with other segments
The Private Clients business unit, which specialises in sales of financial products, once again managed to raise its revenue against a backdrop of mixed market conditions. Its revenue for the third quarter of 2013 increased by 15.2 per cent to €14.3 million (Q3 2012: €12.4 million), while its revenue for the first nine months of this year grew by 16.6 per cent to €42.7 million (Q1-Q3 2012: €36.6 million).
Revenue Private Clients (€ million)
Excluding the change in the method used to calculate sales commissions paid to mortgage finance brokers – which has already been mentioned above in the section on the Hypoport Group's revenue – year-on-year revenue growth would be 3.5 per cent for the third quarter of 2013 and 5.6 per cent for the first nine months of the year.
The selling expenses incurred by the Private Clients business unit stemmed from fees and commissions paid to distribution partners (e.g. franchisees in the mortgage finance and insurance product segments) and from the cost of acquiring leads. Gross profit represents the difference between product suppliers' fee and commission payments and these selling expenses. The gross margin earned in this business unit remained under pressure in the first nine months of 2013 owing to increasingly fierce competition in insurance selling and the challenging conditions prevailing in the market for basic banking products.
Consequently, the gross profit generated in the first nine months of 2013 rose by 2.6 per cent year on year to €13.4 million (Q1-Q3 2012: €13.0 million), while third-quarter gross profit jumped by 22.5 per cent to €4.9 million (Q3 2012: €4.0 million).
| Privat Clients | Jan 1 to 30 Sept 2013 |
Jan 1 to 30 Sept 2012 |
July 1 to 30 Sept 2012 |
|
|---|---|---|---|---|
| Revenue (€ million) | 42.7 | 36.6 | 14.3 | 12.4 |
| Selling expenses (€ million) | 29.3 | 23.6 | 9.4 | 8.4 |
| Net Revenue (€ million) | 13.4 | 13.0 | 4.9 | 4.0 |
The loan brokerage product segment was considerably expanded in the first nine months of 2013 and reported strong growth in its total volume of loans processed, which increased by 18.9 per cent from €3.41 billion to €4.05 billion.
| Volume of transactions | 1 Jan to 30 Sep 2013 |
1 Jan to 30 Sep 2012 |
1 July to 30 Sep 2013 |
1 July to 30 Sep 2012 |
|---|---|---|---|---|
| Volume of financing transactions (€ billion) |
4.05 | 3.41 | 1.36 | 1.28 |
| Volume of insurance transactions (€ million) |
15.85 | 13.60 | 4.84 | 5.35 |
| life insurance | 8.45 | 6.67 | 2.36 | 2.57 |
| private health insurance | 2.69 | 4.99 | 1.29 | 2.04 |
| general insurance | 4.71 | 1.94 | 1.19 | 0.74 |
The volume of transactions in insurance products during the first nine months of 2013 grew by 16.5 per cent from €13.6 million in annual premiums to €15.8 million. Premiums earned in the third quarter of 2013 decreased by 9.7 per cent to €4.8 million (Q3 2012: €5.4 million), with the strongest growth being generated by general insurance. Our private health insurance operations were adversely affected by the extremely tough market environment and therefore suffered a significant contraction in new business.
The insurance portfolio managed by Dr. Klein is supplemented by new business and by portfolios obtained from newly acquired distribution partners and insurance customers. On the other hand, policyholders' contract cancellations and the loss of distribution partners cause Dr. Klein's insurance portfolio to shrink.
Portfolio of insurance policies/annual premiums (€ million)
Boosted by strong growth in its network of advisors, Hypoport achieved a significant year-on-year increase in the portfolio of insurance policies that it managed in the first nine months of 2013, raising its annual life insurance premiums by 40.1 per cent from €39.4 million to €55.3 million, its annual private health insurance premiums by 18.3 per cent from €25.8 million to €30.5 million and its annual general insurance premiums by 71.6 per cent from €7.9 million to €13.6 million. Consequently, the total portfolio of insurance policies under management reached a new all-time high of €99.3 million in annual premiums as at 31 December 2013, compared with €73.1 million a year earlier.
The number of leads acquired – which is a key determinant of future unit sales of basic banking products – decreased significantly by 1.6 million year on year in the first nine months of 2013 to 2.5 million (Q1-Q3 2012: 4.1 million). This reflects consumers' reluctance to put their money into simple investment products such as instant-access and fixed-term deposits because interest rates are extremely low and, consequently, not very appealing for most consumers.
This has reduced the potential for us to earn revenue from these business lines. We are attempting to offset this trend by investing heavily in the online market for personal loans.
The number of advisors working in the various distribution channels of the Private Clients business unit was significantly increased and had reached a new all-time high by 30 September 2013. The map on the right gives an overview of the extensive network of branches established by our franchisees in Germany as well as the Hypoport branches that are located in the major German commercial centres.
Branches run by Dr. Klein
| Distribution channels | 30 Sept 2013 | 31 Dez 2012 |
|---|---|---|
| Advisers in branch-based sales | 883 | 759 |
| Branches run by franchisees | 224 | 199 |
| Independent financial advisers acting as agents | 3.998 | 3.923 |
The figures for the third quarter of 2013 reported by Financial Service Providers – the second-largest business unit – were the best quarterly results that it had achieved since the introduction of the EUROPACE financial marketplace. The volume of transactions completed in the third quarter of 2013 totalled €8.6 billion, which was 19.5 per cent higher than in the corresponding period of last year (Q3 2012: €7.2 billion), thereby topping the €8 billion mark for the second consecutive quarter. Having started the year on a robust note, the volume of transactions grew substantially across all product segments, especially in the second and third quarters. The rise in interest rates that started in May continued until mid-September and underpinned demand from prospective mortgage finance customers. These impressive results were attributable to the stronger partner base as well as the economic recovery and rising real wages.
Volume of transactions on EUROPACE (€ billion)
The volume of transactions completed in the first nine months of 2013 totalled €24.3 billion, which was 11.4 per cent higher than in the corresponding period of last year (Q1-Q3 2012: €21.8 billion).
The total volume of mortgage finance transactions processed in the third quarter of 2013 rose by 18.9 per cent to €6.6 billion (Q3 2012: €5.6 billion). The total value of transactions generated in the first nine months of 2013 grew by 9.6 per cent year on year to €18.8 billion (Q1-Q3 2012: €17.1 billion).
The total value of building finance products brokered via EUROPACE rose sharply in both the third quarter of 2013 (up by 23.0 per cent from €1.3 billion in Q3 2012 to €1.7 billion) and in the first nine months of this year (up by 18.1 per cent from €3.8 billion in Q1-Q3 2012 to €4.5 billion). This was largely attributable to the attractive terms and conditions available on building finance products.
The volume of transactions in personal loans also achieved encouraging growth, with the corresponding figure for the third quarter of 2012 being increased by 15.5 per cent to €0.36 billion (Q3 2012: €0.31 billion). The total value of transactions generated in the first nine months of 2013 grew by 16.8 per cent year on year to €1.01 billion (Q1-Q3 2012: €0.87 billion).
Revenue grew substantially year on year on both a quarterly and nine-month comparison, jumping by 39.7 per cent to €8.8 million in the third quarter of 2013 (Q3 2012: €6.3 million) and advancing by 27.3 per cent to €23.8 million in the first nine months of this year (Q1-Q3 2012: €18.7 million) on the back of larger transaction volumes and the growth in collaborations and Packager-related business. Selling expenses rose more strongly than revenue on both a quarterly and nine-month comparison as a result of the increase in these low-margin collaborations and Packager related transactions.
Gross profit jumped by 16.8 per cent to €5.1 million in the third quarter of 2013 (Q3 2012: €4.4 million) and rose by 9.2 per cent to €14.3 million in the first nine months of this year (Q1-Q3 2012: €13.1 million). Revenue Financial Service Providers (€ million)
| Financial Service Providers business unit | Jan 1 to 30 Sept 2013 |
Jan 1 to 30 Sept 2012* |
July 1 to 30 Sept 2013 |
July 1 to 30 Sept 2012* |
|---|---|---|---|---|
| Volume of transactions | ||||
| (€ billion) | 24.3 | 21.8 | 8.6 | 7.2 |
| thereof mortgage finance | 18.8 | 17.1 | 6.6 | 5.6 |
| thereof personal loans | 1.0 | 0.9 | 0.3 | 0.3 |
| thereof building saving | 4.5 | 3.8 | 1.7 | 1.3 |
| Revenue (€ million) | 23.8 | 18.7 | 8.8 | 6.3 |
| Selling expenses (€ million) | 9.5 | 5.6 | 3.7 | 1.9 |
| Net Revenue (€ million) | 14.3 | 13.1 | 5.1 | 4.4 |
* The comparative prior-year tax figures have been adjusted and are explained in section 5 of the notes to the interim consolidated financial statements "Comparative figures for 2012"
The total number of contractual partners actively using our EUROPACE platform rose from 190 at the end of September 2012 to 231 as at 30 September 2013.
More than 275 participants – a record figure – attended the 22nd EUROPACE Conference that was held in August. The three main topics of interest at this gathering were the German housing market in a low-interest-rate environment, the interest-rate security of mortgages backed by building finance agreements, and the latest technological developments around EUROPACE 2.
In May, GENOPACE broadened its marketplace offering by adding Schwäbisch Hall building finance products. This enabled all credit cooperatives and mutually owned banks that use GENOPACE to offer the FuchsBau and Fuchs Langzeit home savings products of Germany's largest building society as endowment loans or to lock in low interest rates after its customers' fixed-rate borrowing periods have expired. The integration of these building finance products into its existing offering is opening up new sources of growth for GENOPACE. What's more, its broader product range will encourage further banks to start using GENOPACE.
GENOPACE has so far managed to win 13 of Germany's top 25 credit cooperatives and mutually owned banks as partners. The number of contractual partners using GENOPACE is continually rising and totalled 89 as at 30 September 2013 (30 September 2012: 69 partners).
FINMAS, our latest partner-specific financial marketplace, exceeded its first €1 billion worth of cumulative transactions at the beginning of this year. 60 contractual partners are now using FINMAS (30 September 2012: 40), which to date has managed to attract twelve of Germany's top 25 savings banks as partners.
Arranging big-ticket loans for German housing companies, local authorities and commercial property investors constitutes a key source of revenue for the Institutional Clients business unit. This unit continued to benefit from its exceptionally strong market position as the central intermediary for innovative forms of mortgage finance and from the expert advice that it provides on portfolio management and on loans for business customers. The rise in revenue despite the decrease in the value of new loans brokered was largely attributable to the much
Revenue Institutional Clients (€ million)
higher proportion of low-margin short-term loans brokered in the corresponding period of 2012. The strategically successful development and enhancement of this business unit in the first nine months of 2013 was illustrated by the sharp rise in the numbers of borrowers and product suppliers.
€6.0 million of the revenue generated in the first nine months of 2013 came from the brokerage of loans and insurance (Q1-Q3 2012: €5.6 million), and €3.4 million was earned from consulting services (Q1-Q3 2012: €2.8 million). €3.1 million of the revenue generated in the third quarter of 2013 came from the brokerage of loans and insurance (Q3 2012: €1.8 million), while €1.0 million stemmed from consulting services (Q3 2012: €0.9 million).
| Institutional Clients business unit |
Jan 1 to 30 Sept 2013 |
Jan 1 to 30 Sept 2012 |
July 1 to 30 Sept 2013 30 Sept 2012 |
July 1 to | |
|---|---|---|---|---|---|
| Loan Brokerage | |||||
| Volume of new business (€ million) | 901 | 1,051 | 479 | 287 | |
| Volume of prolongation (€ million) | 258 | 530 | 57 | 111 | |
| Revenue (€ million) | 9.4 | 8.4 | 4.1 | 2.7 | |
| Selling expenses (€ million) | 0.3 | 0.3 | 0.1 | 0.0 | |
| Net Revenue (€ million) | 9.1 | 8.1 | 4.0 | 2.7 |
In the third quarter of 2013 the Company continued to attach considerable importance to investing in the further expansion of its B2B financial marketplaces. It also invested further in new advisory systems for end customers and distributors. This capital expenditure underpins the ongoing growth of its Financial Service Providers and Private Clients business units.
In the third quarter of 2013 the Company invested a total of €1.7 million (Q3 2012: €2.1 million) in the development of its marketplaces and advisory systems, while in the first nine months of this year it spent €5.2 million on them (Q1-Q3 2012: €5.6 million). It continues to invest heavily in its forward-looking projects as part of these activities. Of these totals, €1.2 million was capitalised in the third quarter of 2013 (Q3 2012: €1.5 million) and €3.2 million was capitalised in the first nine months of this year (Q1-Q3 2012: €3.7 million), while amounts of €0.5 million for the third quarter of 2013 (Q3 2012: €0.6 million) and €2.0 million for the first nine months of this year (Q1-Q3 2012: €1.9 million) were expensed as incurred. These amounts represent the pro-rata personnel expenses and operating costs attributable to software development.
The substantially higher earnings generated by the Financial Service Providers and Institutional Clients business units in what was a normal, volatile market environment comfortably compensated for the net loss incurred by the Private Clients business unit. The Private Clients business unit continued to operate under challenging market conditions that impacted on its insurance and basic banking products. The restructuring of its insurance business started to show tangible results.
EBITDA aus fortzuführenden Geschäftsbereichen in Mio. €
Against the backdrop of the operating performance described above, EBITDA from continuing operations rose to €4.4 million in the third quarter of 2013 (Q3 2012: €1.9 million), while EBIT from continuing operations increased to €3.4 million (Q3 2012: €0.6 million). In the first nine months of 2013 the Company generated EBITDA of €7.2 million from continuing operations (Q1-Q3 2012: €7.2 million) and EBIT of €4.1 million from continuing operations (Q1-Q3 2012: €3.7 million).
Consequently, the EBITDA margin (EBITDA as a percentage of gross profit) rose from 16.8 per cent to 31.6 per cent in the third quarter of 2013. The EBITDA margin for the first nine months of this year increased to 21.0 per cent (Q1-Q3 2012: 19.4 per cent).
Other operating income essentially comprised income of €466 thousand from employee contributions to vehicle purchases (Q1-Q3 2012: €381 thousand), income of €335 thousand from other accounting periods (Q1-Q3 2012: €240 thousand), and income of €306 thousand from the reversal of provisions (Q1-Q3 2012: €72 thousand).
Personnel expenses for the first nine months of 2013 rose because the average number of employees during the period increased from 521 to 564 people.
| €´000 | 1 Jan to 30 Sep 2013 |
1 Jan to 30 Sep 2012 |
1 July to 30 Sep 2013 |
1 July to 30 Sep 2012 |
|---|---|---|---|---|
| Operating expenses | 4,178 | 3,832 | 1,464 | 1,349 |
| Other selling expenses | 2,011 | 2,132 | 532 | 754 |
| Administrative expenses | 3,204 | 2,691 | 1,012 | 1,030 |
| Other personnel expenses | 458 | 580 | 144 | 254 |
| Other expenses | 746 | 406 | 105 | 193 |
| 10,597 | 9,641 | 3,257 | 3,580 |
The operating expenses consist mainly of building rentals of €1.437 million (Q1-Q3 2012: €1.411 million) and vehicle-related costs of €1.126 million (Q1-Q3 2012: €1.044 million). The other selling expenses relate to advertising costs and travel expenses. The administrative expenses largely comprise IT-related costs of €1.307 million (Q1-Q3 2012: €1.035 million) as well as telephone charges and other communication costs of €482 thousand (Q1-Q3 2012: €460 thousand). The other personnel expenses mainly consist of training costs of €313 thousand (Q1-Q3 2012: €413 thousand).
The net finance costs mainly include interest expenses of €0.5 million for the drawdown of loans and credit lines (Q1-Q3 2012: €0.6 million) and interest expenses of €0.1 million for the discounting of noncurrent receivables from product suppliers (Q1-Q3 2012: €0.2 million).
The Hypoport Group's consolidated total assets as at 30 September 2013 amounted to €70.9 million, which was an increase of 0.3 per cent on the total as at 31 December 2012 (€70.7 million).
Non-current assets totalled €36.9 million (31 December 2012: €35.5 million). This amount included goodwill which, at an unchanged €14.8 million, remained the largest single item.
Current other assets essentially comprise advance commission payments of €4.706 million (31 December 2012: €3.881 million).
The equity attributable to Hypoport AG shareholders as at 30 September 2013 grew by €3.5 million, or 12.0 per cent, to €33.2 million. The equity ratio improved from 42.2 per cent to 47.2 per cent as a result of the net profit reported for the period.
The €2.2 million decrease in non-current liabilities to €12.6 million stemmed primarily from the €1.4 million reduction in financial liabilities.
Other current liabilities mainly comprised commissions received in advance totalling €3.0 million (31 December 2012: €1.8 million) and bonus commitments of €1.8 million (31 December 2012: €1.9 million).
Total financial liabilities declined by €1.9 million to €16.4 million largely because the level of new borrowing was lower than the scheduled loan repayments.
Cash flow increased by €1.2 million to €6.7 million during the reporting period. This increase was largely attributable to the higher net profit reported for the period.
The total net cash generated by operating activities as at 30 September 2013 amounted to €3.6 million (30 September 2012: €4.9 million). The reduction in cash flow compared with the corresponding period of 2012 was mainly attributable to the fact that the cash used for working capital rose by €2.6 million to €3.2 million (30 September 2012: €0.6 million).
The net cash outflow of €4.2 million from investing activities (30 September 2012: net outflow of €4.9 million) stemmed primarily from capital expenditure of €3.6 million on non-current intangible assets (30 September 2012: €4.2 million).
The net cash of €1.9 million used by financing activities (30 September 2012: net cash outflow of €2.1 million) related to scheduled loan repayments of €4.3 million (30 September 2012: €5.4 million) and new borrowing of €2.4 million (30 September 2012: €3.9 million).
Cash and cash equivalents as at 30 September 2013 totalled €6.0 million, which was €2.6 million lower than at the beginning of the year.
Cash and cash equivalents at the end of the period consisted exclusively of cash on hand and at banks.
Most of the capital investment was spent on developing and refining the EUROPACE financial marketplaces. There was also further investment in new advisory systems for end customers and distributors.
The number of employees in the Hypoport Group rose continuously in line with revenue growth and totalled 560 people as at 30 September 2013. This was an increase of 2.6 per cent on the end of 2012 (31 December 2012: 546 people). An average of 564 people were employed in the first nine months of 2013 (Q1-Q3 2012: 521 people).
Global growth remains fragile, and individual countries' share of this growth is constantly changing. The ongoing extremely high levels of uncertainty could dent global economic growth. The United States is highly likely to discontinue its loose monetary policy, creating a knock-on effect on the world economy. Europe continues to be bedevilled by a fragmented financial market and a currency union of highly heterogeneous economies. All major economic areas in the Western world have huge debt problems, which provide the potential for further crises. The International Monetary Fund (IMF) expects the global economy to grow by 2.9 per cent in 2013 and by 3.6 per cent in 2014. It has therefore lowered its forecasts for both this year and next. The IMF reckons that eurozone growth will improve by a modest 0.1 percentage points to a contraction of 0.4 per cent for 2013, while it has kept its growth prediction for 2014 unchanged at 1.0 per cent.
For Germany, however, the IMF is more optimistic, forecasting GDP growth of 0.5 per cent for 2013, which is 0.2 percentage points more than it predicted in July. The experts at the IMF expect German economic output to grow by 1.4 per cent in 2014, which means that they have raised their forecast by 0.1 percentage points. The Centre for European Economic Research (ZEW) concurs with these upbeat economic forecasts for Germany. The German Institute for Economic Research (DIW) expects exports to increase, the labour market to remain stable and wages to rise further, all of which could boost business activity.
The European Central Bank is set to keep its key interest rate on hold at an all-time low. This policy stance is intended to stabilise the money markets, thereby supporting the gradual recovery of the European economy. Credit market growth remains constrained because banks are lending too little to businesses and individuals. Although they have bolstered their equity capital in response to the pressures of tighter regulation, it is still not sufficient to enable them to increase their risk-weighted assets. What's more, potential borrowers are relatively risk averse given the continued pronounced economic uncertainty. Basic financial products such as instant-access deposits and current accounts remain fairly unappealing for consumers.
The future direction of mortgage interest rates will continue to be largely determined by political decisions and Europe's economic fortunes. We expect interest rates to remain flat in the short term. Rates should then rise once the United States and the southern European countries get their budgets and national debts under control. Irrespective of how high interest rates are, the need to make financial provision for old age and the continued lack of investment alternatives will ensure that demand for real estate remains strong.
The German Insurance Association (GDV) – under the guidance of leading insurance companies – has proposed that the commissions earned from life insurance should be capped. This is just one example that illustrates the considerable degree of uncertainty about market regulation in this sector. We firmly believe that consumers' preference for comprehensive, fair and impartial advice will continue to prevail in future. By using a widely diversified business model that is firmly rooted in these values, the Hypoport Group is excellently placed to exploit future potential.
For 2013 as a whole we expect to achieve double-digit revenue growth and earnings in line with the record levels of previous years. Assuming that market conditions remain stable, we plan to generate double-digit revenue and earnings growth in 2014.
| Assets | 30 Sep 2013 €´000 |
31 Dec 2012 €´000 |
|---|---|---|
| Non-current assets | ||
| Intangible assets | 28,997 | 27,684 |
| Property, plant and equipment | 2,432 | 2,618 |
| Financial assets | 96 | 115 |
| Trade receivables | 4,910 | 4,640 |
| Other assets | 22 | 23 |
| Deferred tax assets | 405 | 384 |
| 36,862 | 35,464 | |
| Current assets | ||
| Trade receivables | 22,243 | 21,082 |
| Other current items | 5,735 | 4,687 |
| Income tax assets | 89 | 959 |
| Cash and cash equivalents | 5,996 | 8,555 |
| 34,063 | 35,283 | |
| 70,925 | 70,747 | |
| Equity and liabilities | ||
| Equity | ||
| Subscribed capital | 6,195 | 6,195 |
| Treasury shares | -57 | -61 |
| Reserves | 27,019 | 23,480 |
| 33,157 | 29,614 | |
| Non-controlling interest | 311 | 230 |
| 33,468 | 29,844 | |
| Non-current liabilities | ||
| Financial liabilities | 11,571 | 12,935 |
| Provisions | 241 | 241 |
| Other liabilities | 10 | 10 |
| Deferred tax liabilities | 791 | 1,639 |
| 12,613 | 14,825 | |
| Current liabilities | ||
| Provisions | 40 | 78 |
| Financial liabilities | 4,814 | 5,365 |
| Trade payables | 11,992 | 14,070 |
| Current income tax liabilities | 812 | 116 |
| Other liabilities | 7,186 | 6,449 |
| 24,844 | 26,078 | |
| 70,925 | 70,747 |
for the period 1 January to 30 September 2013
| 1 Jan to 30 Sep 2013 €´000 |
1 Jan to 30 Sep 2012* €´000 |
1 July to 30 Sep 2013 €´000 |
1 July to 30 Sep2012* €´000 |
||
|---|---|---|---|---|---|
| Revenue | 75,717 | 62,903 | 27,053 | 20,973 | |
| Selling expenses | |||||
| (Commision and lead costs) | -38,588 | -28,654 | -13,004 | -9,932 | |
| Gross profit | 37,129 | 34,249 | 14,049 | 11,041 | |
| Own work capitalised | 3,227 | 3,467 | 1,249 | 1,402 | |
| Other operating income | 1,843 | 1,094 | 473 | 272 | |
| Personnel expenses | -24,393 | -21,967 | -8,072 | -7,284 | |
| Other operating expenses | -10,597 | -9,641 | -3,257 | -3,580 | |
| Earnings before interest, tax, | |||||
| depreciation and amortisation (EBITDA) | 7,209 | 7,202 | 4,442 | 1,851 | |
| Depreciation, amortisation expense | |||||
| and impairment losses | -3,070 | -3,547 | -1,024 | -1,222 | |
| Earnings before interest and tax (EBIT) | 4,139 | 3,655 | 3,418 | 629 | |
| Financial income | 73 | 56 | 1 | 6 | |
| Finance costs | -555 | -860 | -231 | -192 | |
| Earnings before tax (EBT) | 3,657 | 2,851 | 3,188 | 443 | |
| Income taxes and deferred taxes | -63 | -772 | -969 | -226 | |
| Profit (loss) from | |||||
| continuing operations, net of tax | 3,594 | 2,079 | 2,219 | 217 | |
| Profit (loss) from | |||||
| discontinued operations, net of tax | 0 | -536 | 0 | -191 | |
| Net profit (loss) for the year | 3,594 | 1,543 | 2,219 | 26 | |
| attributable to non-controlling interest | 81 | -7 | 91 | 37 | |
| from continuing operations | 81 | -7 | 91 | 37 | |
| from discontinued operations | 0 | 0 | 0 | 0 | |
| attributable to Hypoport AG | |||||
| shareholders | 3,513 | 1,550 | 2,128 | -11 | |
| from continuing operations | 3,513 | 2,086 | 2,128 | 180 | |
| from discontinued operations | 0 | -536 | 0 | -191 | |
| Earnings (loss) per share (€) | 0.57 | 0.25 | 0.34 | 0.00 | |
| from continuing operations | 0.57 | 0.34 | 0.34 | 0.03 | |
| from discontinued operations | 0.00 | -0.09 | 0.00 | -0.03 |
* The comparative prior-year tax figures have been adjusted and are explained in section 5 of the notes to the interim consolidated financial statements "Comparative figures for 2012"
for the period 1 January to 30 September 2013
| 1 Jan - 30 Sept 2013 €'000 |
1 Jan - 30 Sept 2012 €'000 |
1 Jan - 30 Sept 2013 €'000 |
1 Jan - 30 Sept 2012 €'000 |
|
|---|---|---|---|---|
| Net profit (loss) for the year | 3.594 | 1.543 | 2.219 | 26 |
| Total income and expenses | ||||
| recognized in equity* | 0 | 0 | 0 | 0 |
| Total comprehensive income | 3.594 | 1.543 | 2.219 | 26 |
| attributable to non-controlling | ||||
| interest | 81 | -7 | 91 | 37 |
| attributable to Hypoport AG | ||||
| shareholders | 3.513 | 1.550 | 2.128 | -11 |
* There was no income or expences to be gecognized in equity during the reporting priod.
| €´000 | Subscribed capital |
Capital reserves |
Retained earnings |
Equity Hypoport AG shareholders |
Equity attributable to attributable to non-controlling interest |
Equity |
|---|---|---|---|---|---|---|
| Balance as at 1 January 2012 | 6,194 | 2,052 | 22,803 | 31,049 | 220 | 31,269 |
| Sale of own shares | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of own shares | -60 | 0 | -551 | -611 | 0 | -611 |
| Total comprehensive income | 0 | 0 | 1,550 | 1,550 | -7 | 1,543 |
| Balance as at 30 September 2012 | 6,134 | 2,052 | 23,802 | 31,988 | 213 | 32,201 |
| €´000 | Subscribed capital |
Capital reserves |
Retained earnings |
Equity Hypoport AG shareholders |
Equity attributable to attributable to non-controlling interest |
Equity |
| Balance as at 1 January 2013 | 6,134 | 2,052 | 21,428 | 29,614 | 230 | 29,844 |
| Sale of own shares | 4 | 5 | 21 | 30 | 0 | 30 |
| Total comprehensive income | 0 | 0 | 3,513 | 3,513 | 81 | 3,594 |
| Balance as at 30 September 2013 | 6,138 | 2,057 | 24,962 | 33,157 | 311 | 33,468 |
for the period 1 January to 30 September 2013
| 30 Sept 2013 €'000 |
30 Sept 2012 €'000 |
|
|---|---|---|
| Earnings before interest and tax (EBIT) | 4,139 | 3,002 |
| from continuing operations | 4,139 | 3,655 |
| from discontinued operations | 0 | -653 |
| Non-cash income (+) / expense (-) | -14 | -231 |
| Interest received (+) | 73 | 56 |
| Interest paid (-) | -555 | -923 |
| Income tax payments (-) | -19 | -361 |
| Depreciation and amortisation expense, impairment losses (+) / | ||
| reversals of impairment losses (-) on non-current assets | 3,070 | 3,940 |
| Gains (-) / losses (+) on the disposal of non-current assets | 31 | 0 |
| Cash flow | 6,725 | 5,483 |
| Increase (+) / decrease (-) in current provisions | -38 | -206 |
| Increase (-) / decrease (+) in inventories, trade receivables and other assets not attributable to investing or financing activities |
-1,629 | 1,415 |
| Increase (+) / decrease (-) in trade payables and other liabilities not attributable to investing or financing activities |
-1,500 | -1,842 |
| Change in working capital | -3,167 | -633 |
| Cash flows from operating activities | 3,558 | 4,850 |
| from discontinued operations | 0 | 180 |
| Payments to acquire property, plant and equipment / intangible assets (-) | -4,228 | -4,719 |
| Proceeds from the disposal of financial assets (+) | 21 | 53 |
| Purchase of financial assets (-) | -2 | -259 |
| Cash flows from investing activities | -4,209 | -4,925 |
| from discontinued operations | 0 | -197 |
| Purchase of own shares (-) | 0 | -611 |
| Proceeds from the issue of bonds and drawdown of loans under finance facilities (+) | 2,400 | 3,900 |
| Redemption of bonds and loans (-) | -4,308 | -5,359 |
| Cash flows from financing activities | -1,908 | -2,070 |
| from discontinued operations | 0 | 0 |
| Net change in cash and cash equivalents | -2,559 | -2,145 |
| Cash and cash equivalents at the beginning of the period | 8,555 | 7,518 |
| Cash and cash equivalents at the end of the period | 5,996 | 5,373 |
| from discontinued operations | 0 | 150 |
for the period 1 January to 30 September 2013
| €'000 | Institutional Clients |
Private Clients |
vice Providers | Financial Ser- Reconciliation | Group |
|---|---|---|---|---|---|
| Segment revenue in respect | |||||
| of third parties | |||||
| 1 Jan - 30 Sept 2013 | 9,414 | 42,635 | 23,330 | 338 | 75,717 |
| 1 Jan - 30 Sept 2012 | 8,349 | 36,544 | 17,973 | 76 | 62,942 |
| 1 July - 30 Sept 2013 | 4,136 | 14,244 | 8,554 | 119 | 27,053 |
| 1 July - 30 Sept 2012 | 2,621 | 12,366 | 5,977 | 17 | 20,981 |
| from continuing operations | |||||
| 1 Jan - 30 Sept 2013 | 9,414 | 42,635 | 23,330 | 338 | 75,717 |
| 1 Jan - 30 Sept 2012 | 8,349 | 36,544 | 17,934 | 76 | 62,903 |
| 1 July - 30 Sept 2013 | 4,136 | 14,244 | 8,554 | 119 | 27,053 |
| 1 July - 30 Sept 2012 | 2,621 | 12,366 | 5,969 | 17 | 20,973 |
| from discontinued operations | |||||
| 1 Jan - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 Jan - 30 Sept 2012 | 0 | 0 | 39 | 0 | 39 |
| 1 July - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 July - 30 Sept 2012 | 0 | 0 | 8 | 0 | 8 |
| Segment revenue in respect | |||||
| of other segments | |||||
| 1 Jan - 30 Sept 2013 | 0 | 65 | 471 | -536 | 0 |
| 1 Jan - 30 Sept 2012 | 0 | 68 | 718 | -786 | 0 |
| 1 July - 30 Sept 2013 | 0 | 28 | 212 | -240 | 0 |
| 1 July - 30 Sept 2012 | 0 | 19 | 303 | -322 | 0 |
| from continuing operations | |||||
| 1 Jan - 30 Sept 2013 | 0 | 65 | 471 | -536 | 0 |
| 1 Jan - 30 Sept 2012 | 0 | 68 | 718 | -786 | 0 |
| 1 July - 30 Sept 2013 | 0 | 28 | 212 | -240 | 0 |
| 1 July - 30 Sept 2012 | 0 | 19 | 303 | -322 | 0 |
| from discontinued operations | |||||
| 1 Jan - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 Jan - 30 Sept 2012 | 0 | 0 | 0 | 0 | 0 |
| 1 July - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 July - 30 Sept 2012 | 0 | 0 | 0 | 0 | 0 |
for the period 1 January to 30 September 2013
| €'000 | Institutional Clients |
Private Clients |
vice Providers | Financial Ser- Reconciliation | Group |
|---|---|---|---|---|---|
| Total segment revenue | |||||
| 1 Jan - 30 Sept 2013 | 9,414 | 42,700 | 23,801 | -198 | 75,717 |
| 1 Jan - 30 Sept 2012 | 8,349 | 36,612 | 18.691 | -710 | 62,942 |
| 1 July - 30 Sept 2013 | 4,136 | 14,272 | 8,766 | -121 | 27,053 |
| 1 July - 30 Sept 2012 | 2,621 | 12,385 | 6,280 | -305 | 20,981 |
| from continuing operations | |||||
| 1 Jan - 30 Sept 2013 | 9,414 | 42,700 | 23,330 | -198 | 75,246 |
| 1 Jan - 30 Sept 2012 | 8,349 | 36,612 | 18,652 | -710 | 62,903 |
| 1 July - 30 Sept 2013 | 4,136 | 14,272 | 8,766 | -121 | 27,053 |
| 1 July - 30 Sept 2012 | 2,621 | 12,385 | 6,272 | -305 | 20,973 |
| from discontinued operations | |||||
| 1 Jan - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 Jan - 30 Sept 2012 | 0 | 0 | 39 | 0 | 39 |
| 1 July - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 July - 30 Sept 2012 | 0 | 0 | 8 | 0 | 8 |
| Gross profit | |||||
| 1 Jan - 30 Sept 2013 | 9,137 | 13,392 | 14,273 | 327 | 37,129 |
| 1 Jan - 30 Sept 2012 | 8,115 | 13,050 | 13,068 | 55 | 34,288 |
| 1 July - 30 Sept 2013 | 4,008 | 4,851 | 5,077 | 113 | 14,049 |
| 1 July - 30 Sept 2012 | 2,664 | 4,025 | 4,345 | 15 | 11,049 |
| from continuing operations | |||||
| 1 Jan - 30 Sept 2013 | 9,137 | 13,392 | 14,273 | 327 | 37,129 |
| 1 Jan - 30 Sept 2012 | 8,115 | 13,050 | 13,029 | 55 | 34,249 |
| 1 July - 30 Sept 2013 | 4,008 | 4,851 | 5,077 | 113 | 14,049 |
| 1 July - 30 Sept 2012 | 2,664 | 4,025 | 4,337 | 15 | 11,041 |
| from discontinued operations | |||||
| 1 Jan - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 Jan - 30 Sept 2012 | 0 | 0 | 39 | 0 | 39 |
| 1 July - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 July - 30 Sept 2012 | 0 | 0 | 8 | 0 | 8 |
for the period 1 January to 30 September 2013
| Institutional | Private | Financial Ser- Reconciliation | Group | ||
|---|---|---|---|---|---|
| €'000 | Clients | Clients | vice Providers | ||
| Segment earnings before interest, | |||||
| tax, amortisation (EBITDA) | |||||
| 1 Jan - 30 Sept 2013 | 3,601 | -419 | 6,215 | -2,188 | 7,209 |
| 1 Jan - 30 Sept 2012 | 2,986 | 725 | 4,950 | -1,719 | 6,942 |
| 1 July - 30 Sept 2013 | 2,195 | 490 | 2,403 | -646 | 4,442 |
| 1 July - 30 Sept 2012 | 946 | -200 | 1,536 | -524 | 1,758 |
| from continuing operations | |||||
| 1 Jan - 30 Sept 2013 | 3,601 | -419 | 6,215 | -2,188 | 7,209 |
| 1 Jan - 30 Sept 2012 | 2,986 | 725 | 5,210 | -1,719 | 7,202 |
| 1 July - 30 Sept 2013 | 2,195 | 490 | 2,403 | -646 | 4,442 |
| 1 July - 30 Sept 2012 | 946 | -200 | 1,629 | -524 | 1,851 |
| from discontinued operations | |||||
| 1 Jan - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 Jan - 30 Sept 2012 | 0 | 0 | -260 | 0 | -260 |
| 1 July - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 July - 30 Sept 2012 | 0 | 0 | -93 | 0 | -93 |
| Segment earnings before | |||||
| interest and tax (EBIT) | |||||
| 1 Jan - 30 Sept 2013 | 3,234 | -944 | 4,685 | -2,836 | 4,139 |
| 1 Jan - 30 Sept 2012 | 2,660 | 673 | 1,991 | -2,322 | 3,002 |
| 1 July - 30 Sept 2013 | 2,068 | 317 | 1,899 | -866 | 3,418 |
| 1 July - 30 Sept 2012 | 817 | -211 | 534 | -738 | 402 |
| from continuing operations | |||||
| 1 Jan - 30 Sept 2013 | 3,234 | -944 | 4,685 | -2,836 | 4,139 |
| 1 Jan - 30 Sept 2012 | 2,660 | 673 | 2,644 | -2,322 | 3,655 |
| 1 July - 30 Sept 2013 | 2,068 | 317 | 1,899 | -866 | 3,418 |
| 1 July - 30 Sept 2012 | 817 | -211 | 761 | -738 | 629 |
| from discontinued operations | |||||
| 1 Jan - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 Jan - 30 Sept 2012 | 0 | 0 | -653 | 0 | -653 |
| 1 July - 30 Sept 2013 | 0 | 0 | 0 | 0 | 0 |
| 1 July - 30 Sept 2012 | 0 | 0 | -227 | 0 | -227 |
| Segment assets | |||||
| 30 Sept 2013 | 22,991 | 21,925 | 23,746 | 2,263 | 70,925 |
| 31 Dec 2012 | 22,276 | 20,053 | 25,434 | 2,984 | 70,747 |
The Hypoport Group is an internet-based financial service provider. Its business model is based on its three mutually supporting business units: Institutional Clients, Private Clients, and Financial Service Providers. All three of the Hypoport Group's business units are engaged in the distribution of financial products and services, facilitated or supported by internet technology.
Operating through its subsidiaries Dr. Klein & Co. Aktiengesellschaft, Vergleich.de Gesellschaft für Verbraucherinformation mbH and Qualitypool GmbH (hereinafter also referred to jointly as 'Dr. Klein'), the Hypoport Group offers private clients internet-based banking and financial products (providing advice, if requested, either by telephone or face to face) ranging from current accounts and insurance to mortgage finance.
Dr. Klein & Co. AG has been a major financial service partner to housing companies, local authorities and commercial property investors since 1954. The Institutional Clients business unit provides its clients in Germany and the Netherlands with a fully integrated service comprising expert advice and customised solutions in the areas of financial management, portfolio management, and insurance for business customers.
The Hypoport Group uses its EUROPACE B2B financial marketplace – Germany's largest online transaction platform – to sell banking products through its subsidiaries Hypoport Mortgage Market Ltd. (mortgage loans, building finance) and EUROPACE AG (personal loans, current accounts, credit insurance). A fully integrated system links a large number of banks with several thousand financial advisors, thereby enabling products to be sold swiftly and directly.
The parent company is Hypoport AG, which is headquartered in Berlin, Germany. Hypoport AG is entered in the commercial register of the Berlin-Charlottenburg local court under HRB 74559. The Company's business address is Klosterstrasse 71, 10179 Berlin, Germany.
The condensed interim consolidated financial statements of Hypoport AG for the nine months ended 30 September 2013 have been prepared in accordance with the provisions of IAS 34 (Interim Financial Reporting). They are based on the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) as adopted by the European Union and take into account the interpretations of the International Financial Reporting Interpretations Committee (IFRIC). The report has been condensed in accordance with IAS 34 compared with the scope of the consolidated financial statements for the year ended 31 December 2012. These condensed interim consolidated financial statements should therefore be read in conjunction with the consolidated financial statements for the year ended 31 December 2012 and the disclosures contained in the notes thereto. These condensed interim consolidated financial statements have not been reviewed by an auditor.
These condensed interim consolidated financial statements are based on the accounting policies and the consolidation principles applied to the consolidated financial statements for the year ended 31 December 2012.
The interim consolidated financial statements and the separate financial statements for the entities included in the IFRS interim consolidated financial statements are prepared in euros.
To improve clarity, all figures in the IFRS interim consolidated financial statements and the interim group management report are presented in thousands or millions of euros unless stated otherwise. We wish to point out that the application and aggregation of rounded amounts and percentages and the use of automated calculation methods may give rise to rounding discrepancies.
All figures on the quantities and volumes of financial products sold (e.g. volume of loans brokered, life insurance premiums, or volume of transactions processed on EUROPACE) include cancellations and, consequently, cannot be compared directly with the revenue figures shown, which exclude cancellations. The relevant figures shown in each case are calculated at a cut-off point in the product transaction process that is appropriate for the accrual method of accounting used. Cancellations that occur later in this process – e.g. as a result of additional credit checks or health checks performed by product suppliers or the exercise of cancellation rights by consumers – are not included in the relevant figures shown.
The consolidated balance sheet is broken down into current and non-current items in accordance with IAS 1.51 et seq.
The consolidated income statement is presented under the nature-of-expense method.
The accounting policies applied are those used in 2012, with the following exceptions:
The first-time adoption of these standards and interpretations has had no impact on the financial position or financial performance of the Hypoport Group.
Owing to the closure of the operating activities of Hypoport Stater B.V. and the related discontinuation of the 'transaction platform for the Dutch market' business unit, which are required by IFRS 5 to be presented as discontinued operations, Hypoport AG has restated the income statement it reported for 2012. For this purpose, the income and expense from these operations, which essentially relate to Hypoport Stater B.V., have been reclassified as profit (loss) from discontinued operations, net of tax.
The tables below show the prior-year figures that have been restated to reflect the discontinuation of these operations.
| Consolidated income Statement €'000 |
1 Jan to 30 Sept 2012 restated |
1 Jan to 30 Sept 2012 as reported |
Change | Thereof: IFRS 5 |
|---|---|---|---|---|
| Revenue | 62,903 | 62,942 | -39 | -39 |
| Selling expenses | -28,654 | -28,654 | 0 | 0 |
| Gross profit | 34,249 | 34,288 | -39 | -39 |
| Own work capitalised | 3,467 | 3,664 | -197 | -197 |
| Other operating income | 1,094 | 1,094 | 0 | 0 |
| Personnel expenses | -21,967 | -22,096 | 129 | 129 |
| Other operating expenses | -9,641 | -10,008 | 367 | 367 |
| Earnings, before interest, tax, de preciation and amortisation (EBITDA) |
7,202 | 6,942 | 260 | 260 |
| Depreciation, amortisation expense and | ||||
| impairment losses | -3,547 | -3,940 | 393 | 393 |
| Earnings before interes and tax (EBIT) | 3,655 | 3,002 | 653 | 653 |
| Financial income | 56 | 56 | 0 | 0 |
| Finance costs | -860 | -923 | 63 | 63 |
| Earnings before tax (EBT) | 2,851 | 2,135 | 716 | 716 |
| Income taxes and deferred taxes | -772 | -592 | -180 | -180 |
| Profit (loss) from continuing operations, net of tax |
2,079 | 1,543 | 536 | 536 |
| Profit (loss) from discontinued operations, net of tax |
-536 | 0 | -536 | -536 |
| Net profit (loss) for the year (total) | 1,543 | 1,543 | 0 | 0 |
| attributable to non-controlling interest | -7 | -7 | 0 | 0 |
| attributable to Hypoport AG shareholders |
1,550 | 1,550 | 0 | 0 |
| Earnings (loss) per share from | ||||
| continuing operations (€) | 0.34 | 0.25 | 0.09 | 0.09 |
| Earnings (loss) per share from discontinued operations (€) |
-0.09 | 0.00 | -0.09 | -0.09 |
| Consolidated income Statement €'000 |
1 July to 30 Sept 2012 restated |
1 July to 30 Sept 2012 as reported |
Change | Thereof: IFRS 5 |
|---|---|---|---|---|
| Revenue | 20,973 | 20,981 | -8 | -8 |
| Selling expenses | -9,932 | -9,932 | 0 | 0 |
| Gross profit | 11,041 | 11,049 | -8 | -8 |
| Own work capitalised | 1,402 | 1,449 | -47 | -47 |
| Other operating income | 272 | 272 | 0 | 0 |
| Personnel expenses | -7,284 | -7,328 | 44 | 44 |
| Other operating expenses | -3,580 | -3,684 | 104 | 104 |
| Earnings, before interest, tax, de preciation and amortisation (EBITDA) |
1,851 | 1,758 | 93 | 93 |
| Depreciation, amortisation expense and | ||||
| impairment losses | -1,222 | -1,356 | 134 | 134 |
| Earnings before interes and tax (EBIT) | 629 | 402 | 227 | 227 |
| Financial income | 6 | 6 | 0 | 0 |
| Finance costs | -192 | -216 | 24 | 24 |
| Earnings before tax (EBT) | 443 | 192 | 251 | 251 |
| Income taxes and deferred taxes | -226 | -166 | -60 | -60 |
| Profit (loss) from continuing operations, net of tax |
217 | 26 | 191 | 191 |
| Profit (loss) from discontinued operations, net of tax |
-191 | 0 | -191 | -191 |
| Net profit (loss) for the year (total) | 26 | 26 | 0 | 0 |
| attributable to non-controlling interest | 37 | 37 | 0 | 0 |
| attributable to Hypoport AG shareholders |
-11 | -11 | 0 | 0 |
| Earnings (loss) per share from | ||||
| continuing operations (€) | 0.03 | 0.00 | 0.03 | 0.03 |
| Earnings (loss) per share from discontinued operations (€) |
-0.03 | 0.00 | -0.03 | -0.03 |
Furthermore, the method used to calculate sales commissions paid to mortgage finance brokers was amended with effect from 1 April 2013. This increased both the revenue and the agency commissions reported as at 30 September 2013 and for the third quarter of 2013 by €4.0 million and €1.4 million respectively. This recognition method has not affected either the net profit (loss) for the period or the earnings (loss) per share reported by the Hypoport Group.
The consolidation as at 30 September 2013 included all entities controlled by Hypoport AG in addition to Hypoport AG itself.
The table below shows the entities included in the interim consolidated financial statements in addition to Hypoport AG.
| Holding % |
|
|---|---|
| ATC Hypoport B.V., Amsterdam | 50.00 |
| Dr. Klein & Co. AG, Lübeck | 100.00 |
| EUROPACE AG, Berlin (formerly Hypoport Insurance Market GmbH, Berlin) | 100.00 |
| GENOPACE GmbH, Berlin | 50.025 |
| FINMAS GmbH, Berlin | 50.00 |
| Hypoport B.V., Amsterdam | 100.00 |
| Hypoport Mortgage Market Ltd., Westport (Irland) | 100.00 |
| Hypoport on-geo GmbH, Berlin | 50.00 |
| Hypoport Systems GmbH, Berlin | 100.00 |
| Qualitypool GmbH, Lübeck | 100.00 |
| Starpool Finanz GmbH, Berlin | 50.025 |
| Vergleich.de Gesellschaft für Verbraucherinformation mbH, Berlin | 100.00 |
With the exception of Hypoport on-geo GmbH, FINMAS GmbH and ATC Hypoport B.V. (all joint ventures consolidated on a pro-rata basis owing to lack of control), all companies in the Group are fully consolidated.
Intangible assets primarily comprise unchanged goodwill of €14.8 million and development costs of €13.1 million for the financial marketplaces (31 December 2012: €11.8 million).
Property, plant and equipment consists solely of office furniture and equipment amounting to €2.4 million (31 December 2012: €2.6 million).
This item includes current and deferred tax income and expense in the following amounts:
| €'000 | Jan 1 to 30 Sept 2013 |
Jan 1 to 30 Sept 2012 |
July 1 to 30 Sept 2013 |
July 1 to 30 Sept 2012 |
|---|---|---|---|---|
| Income taxes attributable | ||||
| to continuing operations | 63 | 772 | 969 | 226 |
| current income taxes | 931 | 662 | 308 | 300 |
| deferred taxes | -868 | 110 | 661 | -74 |
| in respect of timing | ||||
| differences | 281 | 621 | 582 | 364 |
| in respect of tax loss | ||||
| carry forwards | -1,149 | -511 | 79 | -438 |
| Income taxes attributable | ||||
| to discontinued operations | 0 | -180 | 0 | -60 |
| current income taxes | 0 | 0 | 0 | 0 |
| deferred taxes | 0 | -180 | 0 | -60 |
| in respect of timing | ||||
| differences | 0 | 0 | 0 | 0 |
| in respect of tax loss | ||||
| carry forwards | 0 | -180 | 0 | -60 |
| 63 | 592 | 969 | 166 |
A current income tax expense of €3 thousand (Q1-Q3 2012: €34 thousand) relates to previous years.
The average combined tax rates computed on the basis of current legislation remain unchanged at just under 30 per cent for Hypoport Group companies in Germany and between 12.5 per cent and 25.5 per cent for subsidiaries outside Germany.
The figure for earnings per share is determined in accordance with IAS 33. Basic earnings (loss) per share is calculated by dividing the net profit (loss) for the period attributable to the shareholders of Hypoport AG by the weighted average number of outstanding shares. In the first nine months of 2013 there were no share options that would have a dilutive effect on earnings per share
| Jan 1 to 30 Sept 2013 |
Jan 1 to 30 Sept 2012 |
July 1 to 30 Sept 2013 |
July 1 to 30 Sept 2012 |
|
|---|---|---|---|---|
| Net profit (loss) for the year | ||||
| (€'000) | 3,594 | 1,543 | 2,219 | 26 |
| of which attributable to | ||||
| Hypoport AG stockholders | 3,513 | 1,550 | 2,128 | -11 |
| from continuing | ||||
| operations | 3,513 | 2,086 | 2,128 | 180 |
| from discontinued | ||||
| operations | 0 | -536 | 0 | -191 |
| Basic weighted number of | ||||
| outstanding shares ('000) | 6,137 | 6,172 | 6,138 | 6,138 |
| Earings per share (€) | 0.57 | 0.25 | 0.34 | 0.00 |
| from continuing | ||||
| operations | 0.57 | 0.34 | 0.34 | 0.03 |
| from discontinued | ||||
| operations | 0.00 | -0.09 | 0.00 | -0.03 |
Because the Company decided in 2012 to close down the operating activities of Hypoport Stater B.V. and consequently to discontinue the 'transaction platform for the Dutch market' business unit, which are required by IFRS 5 to be presented as discontinued operations, the income and expense from these operations, which essentially relate to Hypoport Stater B.V., have been reclassified and reported separately on the face of the consolidated income statement as profit (loss) from discontinued operations, net of tax. Comparative items have been restated accordingly as required by IFRS 5.
The tables below show the profits (losses) from discontinued operations, net of tax.
| 1 Jan to 30 Sept 2013 1 Jan to 30 Sept 2012 |
|||||
|---|---|---|---|---|---|
| Financial Service | Group | Financial Service | Group | ||
| €'000 | Providers | Providers | |||
| Revenue | 0 | 0 | 39 | 39 | |
| Selling expenses | 0 | 0 | 0 | 0 | |
| Gross profit | 0 | 0 | 39 | 39 | |
| Own work capitalised | 0 | 0 | 197 | 197 | |
| Other operating income | 0 | 0 | 0 | 0 | |
| Personnel expenses | 0 | 0 | -129 | -129 | |
| Other operating expenses | 0 | 0 | -367 | -367 | |
| Earnings before interest, tax, de | |||||
| preciation and amortisation (EBITDA) | 0 | 0 | -260 | -260 | |
| Depreciation, amortisation expense and | 0 | 0 | -393 | -393 | |
| impairment losses | |||||
| Earnings before interest and tax (EBIT) | 0 | 0 | -653 | -653 | |
| Financial income | 0 | 0 | 0 | 0 | |
| Finance costs | 0 | 0 | -63 | -63 | |
| Earnings before tax (EBT) | 0 | 0 | -716 | -716 | |
| Income taxes and deferred taxes | 0 | 0 | 180 | 180 | |
| Profit (loss) from discontinued | 0 | 0 | -536 | -536 | |
| operations, net of tax | |||||
| Earnings (loss) from discontinued | 0.00 | 0.00 | -0.09 | -0.09 | |
| operations (€) |
| €'000 | 1 July to 30 Sept 2013 Financial Service Providers |
Group | 1 July to 30 Sept 2012 Financial Service Providers |
Group |
|---|---|---|---|---|
| Revenue | 0 | 0 | 8 | 8 |
| Selling expenses | 0 | 0 | 0 | 0 |
| Gross profit | 0 | 0 | 8 | 8 |
| Own work capitalised | 0 | 0 | 47 | 47 |
| Other operating income | 0 | 0 | 0 | 0 |
| Personnel expenses | 0 | 0 | -44 | -44 |
| Other operating expenses | 0 | 0 | -104 | -104 |
| Earnings before interest, tax, de | ||||
| preciation and amortisation (EBITDA) | 0 | 0 | -93 | -93 |
| Depreciation, amortisation expense and | 0 | 0 | -134 | -134 |
| impairment losses | ||||
| Earnings before interest and tax (EBIT) | 0 | 0 | -227 | -227 |
| Financial income | 0 | 0 | 0 | 0 |
| Finance costs | 0 | 0 | -24 | -24 |
| Earnings before tax (EBT) | 0 | 0 | -251 | -251 |
| Income taxes and deferred taxes | 0 | 0 | 60 | 60 |
| Profit (loss) from discontinued | 0 | 0 | -191 | -191 |
| operations, net of tax | ||||
| Earnings (loss) from discontinued operations (€) |
0.00 | 0.00 | -0.03 | -0.03 |
The Company's subscribed capital as at 30 September 2013 was unchanged at €6,194,958.00 (31 December 2012: €6,194,958.00) and was divided into 6,194,958 (31 December 2012: 6,194,958) fully paid-up registered no-par-value shares.
The Annual Shareholders' Meeting held on 7 June 2013 voted to carry forward Hypoport AG's distributable profit of €19,135,440.51 to the next accounting period.
The Annual Shareholders' Meeting held on 1 June 2012 voted to set aside the unused authorisation granted on 1 June 2007 and to issue a new authorisation. The Management Board was authorised – subject to the consent of the Supervisory Board – to increase the Company's subscribed capital by up to a total of €3,097,479.00 by issuing new registered no-par-value shares for cash or noncash capital contribution on one or more occasions on or before 31 May 2017. The Management Board can decide – subject to the consent of the Supervisory Board – to disapply the shareholders' statutory pre-emption rights.
The conditional capital created by an Annual Shareholders Meeting resolution adopted on 26 August 2002 no longer exists.
Hypoport held 56,975 treasury shares as at 30 September 2013 (equivalent to €56,975.00, or 0.92 per cent, of the subscribed capital of Hypoport AG), which are intended to be issued to employees. The changes in the numbers of treasury shares and the main data relating to transactions during the reporting period are shown in the table below.
| Change in the balance of treasury shares in 2013 |
Number of shares |
Proportion of sub- scribed capital % |
Cost of purchase € |
Sale price € |
Gain or loss on sale € |
|---|---|---|---|---|---|
| Opening balance as at | |||||
| 1 January 2013 | 60,656 | 0.979 | 611,823.20 | ||
| Sold in April 2013 | 2,928 | 0.047 | 24,994.84 | 23,424.00 | -1,570.84 |
| Sold in May 2013 | 495 | 0.008 | 5,306.40 | 3,950.10 | -1,356.30 |
| Sold in July 2013 | 258 | 0.004 | 2,764.36 | 2,141.40 | -622.96 |
| Balance as at 30 Sept 2013 | 56,975 | 0.920 | 578,757.60 | 29,515.50 | -3.550,10 |
This expense incurred by the purchase and sale of treasury shares was recognised directly in equity and offset against retained earnings.
The breakdown of reserves can be found in the above consolidated statement of changes in equity.
Capital reserves include the premium from the capital increase carried out in 2001 (€400 thousand), the premium from the issuance of shares under the 2002–2004 employee share ownership programme from 2006 to 2009 (€1.187 million), an amount equivalent to the par value of the treasury shares recalled in 2006 (€99 thousand), an amount equivalent to the imputed share of subscribed capital for the treasury shares recalled in 2007 (€247 thousand) and income from the issuance of shares to employees (€124 thousand, of which €4 thousand relates to 2013).
Retained earnings include the profits generated by the entities included in the consolidated financial statements prior to the first-time consolidation on 1 January 2004, the capital gains on the sale of treasury shares, the losses on the recall of treasury shares and three negative goodwill amounts arising from business combinations. These negative goodwill amounts are reported under retained earnings, because profits had been retained after the acquisition but before the date of first-time consolidation.
The cumulative net profits and losses for all periods since the date of first-time consolidation, all the remaining adjustments made under the first-time adoption of IFRS with effect from 1 January 2004 and recognised directly in equity, and a statutory reserve of €7 thousand (31 December 2012: €7 thousand) are also reported under this item.
This non-controlling interest relates to the minority interests in the equity of Starpool Finanz GmbH and GENOPACE GmbH.
No share options were issued in the third quarter of 2013.
IAS 24 requires disclosure of the names of persons or entities that control, or are controlled by, Hypoport AG. Transactions between Hypoport AG and its subsidiaries are eliminated during consolidation and therefore do not have to be reported in this section.
IAS 24 also requires disclosure of the names of persons who can exercise significant influence over the Company.
The parties covered by the requirements also include key management personnel, their close family members and other entities via which a named person exercises control or significant influence over Hypoport AG. The parties covered by this requirement during the reporting period were the members of the Group Management Board and Supervisory Board of Hypoport AG and their close family members.
The table below shows the numbers of shares in Hypoport AG directly or indirectly held by the members of the Group Management Board and Supervisory Board as at 30 September 2013.
| Shares (number) 30 Sept 2013 |
Shares (number) 31 Dec 2012 |
|
|---|---|---|
| Group Management Board | ||
| Ronald Slabke | 2,245,831 | 2,245,831 |
| Thilo Wiegand | 30,000 | 28,000 |
| Stephan Gawarecki | 187,800 | 187,800 |
| Hans Peter Trampe | 174,990 | 174,990 |
| Supervisory Board | ||
| Dr. Ottheinz Jung-Senssfelder | 14,000 | 14,000 |
| Prof. Dr. Thomas Kretschmar | 814,286 | 814,286 |
| Christian Schröder | 23,500 | 23,500 |
The companies in the Hypoport Group have not carried out any further disclosable transactions with members of either the Supervisory Board or the Group Management Board or with companies on whose management or supervisory bodies these persons are represented. This also applies to close family members related to these persons.
Revenue generated by joint ventures totalled €15 thousand in the third quarter of 2013 (Q3 2012: €22 thousand) and €67 thousand in the first nine months of this year (Q1-Q3 2012: €306 thousand). Receivables from joint ventures amounted to €16 thousand as at 30 September 2013 (31 December 2012: €56 thousand) while liabilities to such companies totalled €6 thousand (31 December 2012: €0 thousand).
During the reporting period there were no material changes in the Hypoport Group's opportunities and risks as described in the risk report within the 2012 group management report. There are no identifiable risks to the Hypoport Group as a going concern.
There were no exceptional, positive seasonal influences on the performance of the Hypoport Group's business in the third quarter of 2013. The first quarter of every year is notoriously the weakest season in the mortgage finance business. In the past, positive changes in the mortgage market for both private and institutional clients have been noticeable over the course of a year. The Company expects to see an encouraging trend in the sale of insurance products to private and institutional clients during the course of the year caused, among other things, by certain industry-wide cancellation deadlines and tax issues.
No material events have occurred since the balance sheet date.
Berlin, 4 November 2013
Hypoport AG – The Management Board Ronald Slabke – Thilo Wiegand – Stephan Gawarecki – Hans Peter Trampe
Hypoport AG Klosterstraße 71 10179 Berlin Tel.: +49 (0) 30/420 86 – 0 Fax: +49 (0) 30/420 86 – 1999 E-Mail: [email protected] www.hypoport.de
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.