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Linedata Services — Earnings Release 2016
Oct 20, 2016
1483_10-q_2016-10-20_88614f85-697a-465c-ba39-ec37f0f45f3a.pdf
Earnings Release
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Revenue for the first 9 months of 2016: €123.1m
| €m - IFRS | 9 months 2015 |
9 months 2016 * |
Change | Like-for-like change at constant exchange rates |
|---|---|---|---|---|
| Asset Management | 75.2 | 73.6 | - 2.1 % | - 0.7 % |
| Lending & Leasing | 44.5 | 43.7 | - 1.8 % | - 0.1 % |
| Other activities | 6.3 | 5.8 | - 8.1 % | - 8.1 % |
| Total | 126.0 | 123.1 | - 2.3 % | - 0.8 % |
Rounded, unaudited figures * Includes Derivation activity from 8 April 2016
Neuilly-sur-Seine, 20 October 2016: Linedata (LIN:FP), the global solutions provider to the investment management and lending and leasing industries, recorded revenues of €123.1 million at 30 September 2016, down 2.3% compared with the first 9 months of the previous financial year.
On a like-for-like basis, that is without the €0.9 million contribution resulting from the acquisition of the Derivation business, and at constant exchange rates, that is without the €2.7 million negative impact of exchange rate variations, there was a 0.8% organic decrease in revenues over the period, mainly due to a delay in new orders.
In the third quarter of 2016, revenues were €40.0 million, a decrease of 7.6% compared with the same period last year. At constant exchange rates and on a like-for-like basis, the decrease was 5.3%.
Recurring revenues represented 73% of total revenues and amounted to €90.1 million over the first 9 months of year, compared with €90.7 million in 2015.
At 30 September 2016, order bookings were down 22% at €33.9 million, compared with €43.7 million for the same period in 2015.
Performance analysis by segment:
ASSET MANAGEMENT (Q1: €24.8M, +2.7%; Q2: €24.4M, -5.1%; Q3: €24.5M, -3.6%)
Asset Management, which was impacted by the falling pound sterling and the post-Brexit wait-and-see attitude in Europe, suffered a slight decrease of 2.1% during the first 9 months of the financial year. Good progress has been made with the integration of the Derivation business thanks to good cooperation between the operational teams.
LENDING & LEASING (Q1: €13.8M, -0.2%; Q2: €16.1M, +6.8%; Q3: €13.8M, -11.5%)
At 30 September 2016, activity was down 1.8% compared with 2015 and was impacted mainly by the decrease in revenues in North America.
In Europe and sub-Saharan Africa, business continued to be strong, particularly on the new Linedata Ekip360 solutions, with initial migrations generating an increase in revenues. Conversely, the Linedata CapitalStream business in the United States was down due to the low level of new orders.
OTHER ACTIVITIES (Q1: €1.7M, -18.2%; Q2: €2.4M, +22.3%; Q3: €1.7M, -25.2%)
This segment fell by 8.1% over 9 months as a result of exceptional invoicing in 2015 in the Insurance business.
Outlook
Given that bookings are below last year's and unfavourable exchange rate movements, Linedata, which previously voiced caution in its most recent press releases, expects revenues for 2016 to be slightly down from 2015.
The Group continues to deploy its medium-term strategy, with progressive growth in its R&D investments, which should enable it to accelerate its business development while strengthening customer relationships.
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Next communication: Publication of 2016 revenues on 1st February 2017 after close of trading.
ABOUT LINEDATA
Linedata is a global solutions provider dedicated to the investment management and credit communities, with close to 1000 employees in 16 offices across the globe. Linedata has been at the service of the financial industry from day one, and applies its market and client insight to provide innovative and flexible mission-critical software and services that help its clients grow in over 50 countries. Headquartered in France, Linedata achieved revenues of €172.3 million in 2015. This company is listed on Euronext Paris compartment B FR0004156297-LIN – Reuters LDSV.LN – Bloomberg LIN: FP.
For further information, please contact:
Linedata Finance Department +33 (0)1 73 43 70 27 [email protected] www.linedata.com
Cap Value Financial communication Gilles Broquelet +33 (0)1 80 81 50 00 / [email protected] www.capvalue.fr