DGAP-News

GFT Technologies SE: GFT exceeds guidance and expects further growth and significantly improved earnings in 2021 - Seite 2

Marika Lulay, CEO of GFT Technologies SE, states: "2020 was an eventful year in which we swiftly and successfully adapted to changing circumstances. The fact that we were able to exceed our revenue guidance demonstrates the strength of our business model and our strategy. In terms of earnings, we are even well above target and expect further strong growth in 2021."

Lulay says it is remarkable that GFT achieved strong growth in its relatively new business with insurance clients as well as with cutting-edge, fast-growing technologies. "Our outstanding expertise in Guidewire solutions has paid off in our insurance business, and in our cloud business we almost doubled our team of experts to more than 900 - our clients rewarded this with their orders."

Lulay added that the current digitisation trend was still a long way from reaching its peak. The pace of growth in the market for cloud solutions and applications based on artificial intelligence will continue to increase. "We are in an excellent position to meet this increasing demand and to accelerate our growth once again in the current year. For example, we recently unveiled our BankLite solution which enables clients to set up a complete digital bank based on cutting-edge technology much faster than before. Further innovative solutions will follow."

Revenue increased, guidance exceeded

In its financial year 2020, GFT generated total revenue of EUR 444.85 million - an increase of 4 percent over the previous year (EUR 428.98 million). Organic revenue growth amounted to 3 percent. Without the top-2 clients, revenue increased by as much as 14 percent, due in particular to the dynamic trend of the fast-growing insurance business and the cloud solutions business.

GFT continued to pursue its diversification strategy in the past year. As a result, the proportion of total revenue contributed by the top-2 clients was reduced to 21 percent (previous year: 28 percent). In its business with insurance clients, GFT achieved revenue growth of 23 percent and thus reached the target set for this sector before the pandemic. GFT also stepped up its geographical diversification in the past year: after strengthening its sites in Singapore and Hong Kong, the Asia-Pacific region already generated revenue of around EUR 10 million with innovative projects, such as the establishment of the completely digital new bank Mox in Hong Kong. The region has also been expanded by the addition of a new delivery centre in Vietnam.