OVB continues on profitable growth path
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- Total sales commission increases by 4.8% to €57.1 million
- EBIT rises by 31.6% to €3.0 million
- First quarter exceeds expectations
Cologne, 11 May 2016 – In the first quarter of 2016, the European financial advisory group OVB recorded positive business performance that exceeded expectations. All of the Group’s relevant financial figures increased. While total sales commission rose by 4.8%, EBIT increased by 31.6% and consolidated net income went up 29.0%. “In the first three months of this year, we achieved good business performance in a challenging environment. The balanced nature and stability of the OVB business model has proven itself once again. Moderate business performance in Slovakia, the Czech Republic and Poland was offset by positive development on other national markets of the Central and Eastern Europe segment. The Germany segment saw a significant year-on-year increase. We continue to see very dynamic growth in the Southern and Western Europe segment,” summarised CEO of OVB Holding AG Mario Freis regarding the OVB Group’s business performance in the first quarter of 2016.
Development in the segments
The very positive performance in Southern and Western Europe continued unabated, achieving a rise of 15.2% in total sales commission and a 35.4% improvement in earnings. In Germany, total sales commission increased by 8.1% – with a significant improvement in earnings by 13.3%. In Central and Eastern Europe, brokerage income and operating income fell slightly behind the level of the previous year.
“This indicates that we have grown profitably again across the Group in the first quarter,” highlighted CFO Oskar Heitz.
The number of clients advised amounted to 3.26 million clients at the end of the reporting period on 31 March 2016 (previous year: 3.24 million clients). Across Europe, these clients are advised by 5,179 full-time OVB financial advosors (previous year: 5,204 financial brokers).
Outlook
Based on this successful first quarter, OVB made a slight upward revision to its sales and earnings expectations for 2016 as a whole. The Executive Board now anticipates total sales commission for the year as a whole to be close to the level of the previous year. Operating income is expected to move slightly above the level of the previous year. “Our performance in the first three months was good and proves that we are on the right track with the OVB one-stop finance concept. However, we are facing great challenges across Europe. In particular, regulatory changes on individual national markets may dampen the OVB Group’s growth momentum,” Mario Freis summarised the Executive Board’s expectations for the year as a whole.
About OVB Group
The OVB Group, with its holding company headquartered in Cologne, is one of Europe’s leading financial advisory groups. Since being founded in 1970, OVB’s business activities have focused on long-term, comprehensive and above all cus-tomer-oriented allfinanz consulting for private households. OVB works with more than 100 high-performance providers and uses competitive products to serve its clients’ individual needs for subsistence and pensions, asset building, asset protec-tion and increasing assets. OVB currently operates in a total of 14 countries.
Over 5,100 full-time financial advisors currently advise approximately 3.26 million clients. In 2015, OVB Holding AG and its subsidiaries generated total sales commission of €224.7 million and EBIT of €14.0 million. OVB Holding AG has been listed on the Frankfurt Stock Exchange (Prime Standard, ISIN DE0006286560) since July 2006.
Key figures of the OVB Group for Q1/2016
| Unit | 01/01– | 01/01- | Change |
|---|---|---|---|---|
Clients (31 Mar.) | Number | 3.24 m | 3.26 m | + 0.6 % |
Financial advisors (31 Mar.) | Number | 5,204 | 5,179 | - 0.5 % |
Total sales commission | € million | 54.5 | 57.1 | + 4.8 % |
* Based on total sales commission
| Unit | 01/01– | 01/01- | Change |
|---|---|---|---|---|
Earnings before interest and taxes (EBIT) | € million | 2.2 | 3.0 | + 31.6 % |
EBIT margin* | % | 4.1 | 5.2 | + 1.1 %-pts. |
Consolidated net income | € million | 1.6 | 2.0 | + 29.0 % |
Earnings per share (basic) | € | 0.11 | 0.14 | + 27,3 % |
* Based on total sales commission
| Unit | 01/01– | 01/01- | Change |
|---|---|---|---|---|
Central and Eastern Europe | ||||
Clients (31 Mar.) | Number | 2.22 m | 2.21 m | - 0.5 % |
Financial advisors (31 Mar.) | Number | 3,260 | 3,132 | - 3.9 % |
Total sales commission | € million | 26.6 | 26.0 | - 2.2 % |
EBIT | € million | 1.8 | 1.7 | - 5.9 % |
EBIT margin* | % | 6.7 | 6.5 | - 0.2 %-pts. |
Germany | ||||
Clients (31 Mar.) | Number | 645,371 | 639,288 | - 0.9 % |
Financial advisors (31 Mar.) | Number | 1,329 | 1,327 | - 0.2 % |
Total sales commission | € million | 15.2 | 16.4 | + 8.1 % |
EBIT | € million | 1.3 | 1.5 | + 13.3 % |
EBIT margin* | % | 8.5 | 9.0 | + 0.5 %-pts. |
Southern and Western Europe | ||||
Clients (31 Mar.) | Number | 372,776 | 408,994 | + 9.7 % |
Financial advisors (31 Mar.) | Number | 615 | 720 | + 17.1 % |
Total sales commission | € million | 12.7 | 14.6 | + 15.2 % |
EBIT | € million | 1.3 | 1.8 | + 35.4 % |
EBIT margin* | % | 10.2 | 12.0 | + 1.8 %-pts. |
* Based on total sales commission