Summary
H1 2016 reported revenue was EUR 128.1m, an increase of 2.9% and an increase of 5.1% when measured in local currencies compared with H1 2015.
H1 2016 adjusted non-GAAP[1]revenue was EUR 132.7m, an increase of 6.6% and an increase of 8.8% when measured in local currencies.
New SimCorp Dimension orders signed in H1 based on subscription licensing terms have contributed to the 11% growth in the order book, valued at EUR 32.4m as of 30 June 2016.
At 30 June 2016, EUR 232m of the projected 2016 revenue had been contractually secured, EUR 6m more than at the same point in time last year.
SimCorp maintains its expectations for reported revenue growth and EBIT margin measured in local currency for 2016. Revenue growth measured in local currencies is still expected to be between 3% and 8%, and the expectation for EBIT margin measured in local currencies remains between 21% and 24%. SimCorp maintains its expectations for the adjusted non-GAAP revenue growth in local currencies to be between 8% and 15% and the expectation for adjusted non-GAAP EBIT margin measured in local currencies to be between 24% and 28%.
Klaus Holse, SimCorp CEO comments: ”With a satisfactory H1 order intake in line with expectations our order book stands at all time high. The underlying business activity in our markets remains high leading to an 11% increase in professional services revenue and we continue to see more opportunities coming to market.”
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SimCorp’s Board of Directors today considered and approved the Group’s interim report for the six months ended 30 June 2016. Highlights of the report are:
- H1 order intake from new licenses and add-on licenses was EUR 24.8m compared with EUR 31m in H1 2015. Q2 order intake was EUR 13.9m compared with EUR 17.9m in Q2 2015. The order book increased by EUR 3.4m during the quarter, and amounted to EUR 32.4m at 30 June 2016, compared with EUR 29.2m at June 2015. Page 5
- Reported revenue for H1 increased 2.9% y/y to EUR 128.1m and 5.1% y/y in local currencies. Q2 reported revenue increased 0.7% to EUR 68.5m and 3.7% y/y in local currencies. Page 6
- H1 2016 adjusted non-GAAP revenue increased 6.6% y/y in EUR and yielded 132.7m. In local currencies the increase was 8.8%. Q2 2016 adjusted non-GAAP revenue increased 0.5% y/y in EUR and yielded 68.4m. In local currencies the increase was 3.4%. Page 6
- H1 2016 recurring revenue was EUR 78.6m compared with EUR 76.2m in the same period of 2015. Currency fluctuations impacted this negatively by EUR 1.4m. Q2 2016 recurring revenue was EUR 40.9m compared with EUR 39.7m in the same period of 2015. Currency fluctuations impacted the revenue negatively by EUR 1.0m. Page 7
- H1 2016 non-recurring revenue was EUR 49.5m compared with EUR 48.3m in the same period of 2015. Currency fluctuations impacted this negatively by EUR 1.4m. Q2 2016 non-recurring revenue was EUR 27.6m compared with EUR 28.3m in the same period of 2015. Currency fluctuations impacted the revenue negatively by EUR 1.0m. Page 7
- Total cost for the six months was EUR 108.8m, an increase of 7.5% compared with the same period in 2015, currency fluctuations reduced costs by EUR 1.5m (1.5%-points). In Q2 total cost was EUR 54.9m, an increase of 7.0% on the same period last year, of which currency fluctuations reduced costs by EUR 0.8m (1.6%-points). Page 8
- H1 2016 EBIT was EUR 19.5m compared with EUR 22.2m for the same period last year. Currency fluctuations impacted H1 EBIT negatively by EUR 1.2m. Q2 EBIT was EUR 13.7m compared with EUR 16.7m in Q2 last year. Currency fluctuations impacted Q2 EBIT negatively by EUR 0.9m. Page 10
- H1 2016 EBIT margin was 15.2% compared to 18.7% the year before. Q2 2016 EBIT margin was 19.9% compared to 24.6% the year before. Page 10
- H1 2016 adjusted non-GAAP EBIT increased by 3.5% to EUR 24.1m and adjusted non-GAAP EBIT for Q2 2016 was EUR 13.5m compared with EUR 16.7m in Q2 2015. Page 10
- H1 2016 adjusted non-GAAP EBIT margin was 18.2% compared to 18.7% the year before. Q2 2016 adjusted non-GAAP EBIT margin was 19.7% compared to 24.6% the year before. Page 10
- The H1 cash flow from operating activities before financial items was EUR 32.3m compared with EUR 21.5m in the same period of 2015. In Q2 cash flow from operating activities before financial items was EUR 10.8m compared with EUR 7.5m in the same period of 2015. Page 11
- SimCorp maintains its expectations for full-year revenue growth measured in local currencies of 3-8% and an EBIT margin measured in local currencies of between 21% and 24%. Expectations for adjusted non-GAAP revenue growth in local currency is maintained between 8% and 15% and the expectation for adjusted non-GAAP EBIT margin measured in local currencies is maintained between 24% and 28%. Based on currency rates prevailing at the end of July 2016, SimCorp expects a negative impact from currency fluctuations on full-year revenue growth of around 2% (unchanged) and a negative currency impact on EBIT margin of around 0.2% (unchanged). Page 12
- At 30 June 2016, EUR 232m of the projected 2016 revenue had been contractually secured, EUR 6m more than at the same time last year. The Group’s pipeline of potential license contracts supports the expected revenue growth. Page 12
Investor meeting
SimCorp’s Executive Management Board will present this interim report at a conference call from New York Friday the same day at 2:00 PM (CEST). Please use any of the following phone numbers to dial in to the conference call. The pin code to access the call is 5422069#. At the end of the presentation it will be possible to ask questions.
From Denmark: +45 3271 1659
From USA: +1 646 254 3365
From other countries: +44 (0)20 3427 1904
It will also be possible to follow the presentation via this link: http://edge.media-server.com/m/p/u5aq6hyr.
The presentation will be available just prior to the conference call via SimCorp’s website www.simcorp.com.
Enquiries regarding this announcement should be addressed to:
Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8802, +45 2326 0000) or
Thomas Johansen, Chief Financial Officer, SimCorp A/S (+45 3544 6858, +45 2811 3828)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892 8881)
[1] As of 2016 SimCorp predominantly offer SimCorp Dimension to new customers on subscription based licensing terms as opposed to the historically used perpetual based licensing terms. Adjusted non-GAAP figures are presented as if the SimCorp Dimension orders were still made on perpetual license terms and consequently income recognized when signed.
Company Announcement no. 32/2016
