Earnings Release • May 8, 2013
Earnings Release
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Corporate | 8 May 2013 07:30
Solid first quarter of 2013 for OVB
OVB Holding AG / Key word(s): Quarter Results/Quarter Results
08.05.2013 / 07:30
Solid first quarter of 2013 for OVB
– Total sales climb to EUR54.8 million
– EBIT rises 12.7%
– Client growth with stable consultant development
– Outlook for 2013 confirmed
Cologne, 8 May 2013 – OVB generated total sales commission of EUR54.8 million in the first quarter of 2013 (EUR54.3 million). EBIT climbed by 12.7% to EUR2.2 million (EUR1.9 million). At EUR1.7 million, net income exceeded the figure for the same quarter of the previous year by 16.0% (EUR1.4 million).
‘2013 has begun solidly for us. Our business performance in Southern and Western Europe in particular was again very encouraging,’ said CEO Michael Rentmeister when presenting the figures.
Business development in the regions
Business in the countries of Central and Eastern Europe was kept stable at a high level. Brokerage income amounted to EUR30.8 million (EUR31.5 million). Total sales commission of EUR15.9 million was generated in Germany (EUR15.7 million). In the six countries of the Southern and Western Europe segment, total sales commission rose strongly by 14.5% in the first three months of 2013 to EUR8.1 million Euro (EUR7.1 million). Growth impetus was mainly created in Italy, Spain and Switzerland.
Consolidated EBIT climbed to EUR2.2 million (EUR1.9 million), an increase of 12.7% as against the prior-year figure. The EBIT contribution from Central and Eastern Europe was EUR2.6 million (EUR2.7 million). Germany matched the previous year’s figure of EUR1.4 million in 2013. A significant improvement in earnings was achieved in the Southern and Western Europe segment. EBIT here went from a loss in the previous year to income of EUR0.5 million (EUR-0.1 million). The EBIT margin – calculated on the basis of total sales commission – was 4.0% (3.6%).
Consolidated net income for the period from January to March 2013 amounted to EUR1.7 million (EUR1.4 million), resulting in basic earnings per share of EUR0.12 (EUR0.10) with the same number of shares.
Client growth with stable consultant development
OVB gained additional customers in all segments: Over the last twelve months, customer numbers have risen from 2.89 to 3.0 million. The number of OVB financial consultants remained stable year-on-year. However, the unclear political and regulatory situation in some countries of the Central and Eastern Europe segment was countered by a rise in consultant numbers.
Outlook
OVB is confident in its outlook for 2013 as a whole and it is standing by its forecast for the year: a sales increase in the mid-single digits, earnings growth of 10% to 15%. ‘Market conditions are difficult in 2013 as well. Despite a growing awareness of the problem, it is still a challenge for the people of Europe to take responsibility for their own pensions. The reasons for this are varied: The ongoing European debt crisis and therefore persistently low interest rates are making it difficult to generate a return on savings and pension assets above the rate of inflation. In some countries we are currently seeing that political support for necessary pension reform is faltering, a fatal signal to people facing necessary pension decisions. Regular changes in regulatory conditions on the one hand and media reporting that the public find troubling on the other are fanning consumer reluctance regarding urgently needed private pensions,’ said Rentmeister of the challenge of 2013.
About OVB Group
OVB Group, with its holding company headquartered in Cologne, is one of the lead-ing European financial sales organisations. Since its founding in 1970, customer-oriented consulting for private households with regard to asset protection, asset building, pension plans and real estate acquisition has been the focus of OVB’s business activities. OVB currently advises some 3.0 million customers across Europe, working in cooperation with over 100 renowned product partners. OVB is presently active in 14 countries, with roughly 5,000 full-time financial consultants working for the Group. In 2012, OVB Holding AG and its subsidiaries generated total sales commission of EUR214.7 million and EBIT of EUR10.5 million. OVB Holding AG has been listed on the Frankfurt Stock Exchange (Prime Standard, ISIN DE0006286560) since July 2006.
The presentation of the results of the first quarter and the interim report can be downloaded from the Investor Relations section of www.ovb.ag.
This press release is also available on the Internet at:
www.ovb.ag ( Press ( Press Releases
Key figures of the OVB Group for Q1/2013
| Key operating figures | Unit | 01/01- 31/03/2012 |
01/01- 31/03/2013 |
Change |
| Clients (31 Mar.) | Million | 2.89 | 3.00 | + 3.8 % |
| Financial consultants (31 Mar.) | Number | 5,047 | 4,934 | – 2.2 % |
| New policies | Number | 145,446 | 116,558 | – 19.9 % |
| Total sales commission | EUR million | 54.3 | 54.8 | + 0.9 % |
| Key financial figures | Unit | 01/01- 31/03/2012 |
01/01- 31/03/2013 |
Change |
| Earnings before interest and taxes (EBIT) | EUR million | 1.9 | 2.2 | + 12.7 % |
| EBIT margin* | % | 3.6 | 4.0 | + 0.4 %-pts. |
| Consolidated net income | EUR million | 1.4 | 1.7 | + 16.0 % |
| Earnings per share (basic) | EUR | 0.10 | 0.12 | + 20.0 % |
* Based on total sales commission
Key figures by region for Q1/2013
| Unit | 01/01- 31/03/2012 |
01/01- 31/03/2013 |
Change | |
| Central and Eastern Europe | ||||
| Clients (31 Mar.) | Number | 1.92 million | 2.00 million | + 4.2 % |
| Financial consultants (31 Mar.) | Number | 3,326 | 3,127 | – 6.0 % |
| Total sales commission | EUR million | 31.5 | 30.8 | – 2.2 % |
| EBIT | EUR million | 2.7 | 2.6 | – 1.4 % |
| EBIT margin* | % | 8.5 | 8.5 | ± 0%-pts. |
| Germany | ||||
| Clients (31 Mar.) | Number | 649,296 | 651,004 | + 0.3 % |
| Financial consultants (31 Mar.) | Number | 1,335 | 1,354 | + 1.4 % |
| Total sales commission | EUR million | 15.7 | 15.9 | + 1.3 % |
| EBIT | EUR million | 1.4 | 1.4 | ± 0% |
| EBIT margin* | % | 8.9 | 8.8 | – 0.1 %-pts. |
| Southern and Western Europe | ||||
| Clients (31 Mar.) | Number | 311,009 | 316,175 | + 1.7 % |
| Financial consultants (31 Mar.) | Number | 386 | 453 | + 17.4 % |
| Total sales commission | EUR million | 7.1 | 8.1 | + 14.5 % |
| EBIT | EUR million | -0.1 | 0.5 | – % |
| EBIT margin* | % | -1.0 | 6.1 | + 7.1 %-pts. |
* Based on total sales commission
End of Corporate News
08.05.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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| Language: | English |
| Company: | OVB Holding AG |
| Heumarkt 1 | |
| 50667 Köln | |
| Germany | |
| Phone: | +49 221 2015 – 0 |
| Fax: | +49 221 2015 – 264 |
| E-mail: | [email protected] |
| Internet: | www.ovb.ag |
| ISIN: | DE0006286560 |
| WKN: | 628656 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart |
| End of News | DGAP News-Service |
| - - - |
| 210207 08.05.2013 |
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