GFT Technologies SE lowers guidance for 2017

GFT Technologies SE has lowered its revenue and earnings guidance for the 2017 financial year. This change is due to a significant correction in the contributions to turnover by two major investment banking customers in the UK and North America expected for 2017 based on cost-containment measures.

Over the year, GFT’s revenue in connection with these two financial institutions in the investment banking area will be around 37.00 million euros less than originally planned. Although the revenue with all other customers is expected to increase by a total of 13 per cent in 2017 as compared to the previous year, this does not compensate for the reduction in revenue with these two major customers.

GFT now expects consolidated revenue of 425.00 million euros for the 2017 financial year (previously 450.00 million euros). In addition to the lacking operational profits from the lowered revenue guidance and higher social security contributions in Brazil, one-off effects resulting from restructuring measures and currency fluctuations will also have a negative effect on earnings. The company now plans to generate earnings before interest, taxes, depreciation and amortisation (EBITDA) of 42.00 million euros (previously 48.50 million euros) in 2017. The guidance for earnings before taxes (EBT) has been reduced from 35.00 million euros to 26.00 million euros, whereby this also includes 2.00 million euros from the reassessment of intangible assets.

Assuming that the cost-containment measures by the two major investment banking customers could continue until 2018, GFT is now proceeding on the basis that it will be able to achieve its medium-term guidance with an increase in turnover to 800.00 million euros and an EBITDA margin of around 12 percent only in 2022 (previously 2020).

Further information on the key figures in this ad-hoc disclosure can be found on GFT’s website at www.gft.com/performancemeasures.

As announced, the results for the second quarter of 2017 will be published on 10 August 2017.