DGAP-News

GFT Technologies SE: Strong first quarter for GFT - significant revenue growth, earnings more than doubled - Seite 2

Dynamic growth

In the first three months of 2021, the GFT Group generated revenue of EUR 123.92 million. This corresponds to an increase of 10 percent over the prior-year figure of EUR 112.48 million. Adjusted for the top-2 clients¹⁾, growth even reached 17 percent.

GFT continued its diversification strategy aimed at reducing the risk of client concentration: the share of total revenue contributed by the company's top-2 clients was decreased further to 18 percent (Q1/2020: 23 percent). Business with insurance clients rose to 15 percent of total revenue (Q1/2020: 13 percent). Compared to the same period last year, revenue in this sector increased by 25 percent.

In the Continental Europe segment, revenue of EUR 60.44 million in the first three months of 2021 was on a par with the previous year (Q1/2020: EUR 59.90 million). Revenue in the Americas, UK & APAC segment grew by 21 percent to EUR 63.45 million (Q1/2020: EUR 52.50 million).

As of 31 March 2021, the GFT Group employed a total of 6,225 people (full-time equivalents) and thus 14 percent more than at the end of the first quarter of 2020 (5,460 employees). This increase was mainly due to the strong expansion of expertise in Brazil. As a result, Brazil has overtaken Spain as the largest location within the GFT Group.

Upward trend for earnings

Due to the growth in revenue, the increased utilisation and efficiency measures implemented in the previous year, earnings in the first quarter of 2021 were significantly improved. In the first three months of 2021, adjusted EBITDA rose by 30 percent to EUR 13.55 million (Q1/2020: EUR 10.39 million). EBIT grew by 104 percent to EUR 7.37 million (Q1/2020: EUR 3.61 million) and EBT by 132 percent to EUR 7.01 million (Q1/2020: EUR 3.02 million). Net income increased by 126 percent to EUR 5.16 million (Q1/2020: EUR 2.28 million).

GFT with solid balance sheet - financial stability and flexibility remain high

In the first quarter of 2021, operating cash flow remained high at EUR 15.12 million (Q1/2020: EUR 15.20 million). Compared to year-end 2020, the Group's liquidity fell slightly to EUR 62.12 million (31 December 2020: EUR 70.87 million) but also remains high. Following the redemption of loans, the GFT Group's net liquidity improved further to EUR -19.98 million (31 December 2020: EUR -31.35 million). The balance sheet was strengthened once again; the equity ratio improved to 34 percent as of 31 March 2021 (31 December 2020: 31 percent).