- Revenue up 10 percent compared to first quarter of 2022
- Strongly improved earnings: adjusted EBIT +17 percent, EBT +12 percent
- Diversification across sectors and clients continued: Insurance sector +4 percent, Industry & Others +24 percent; core market Banking with further growth: +10 percent
- Guidance for 2023 confirmed: revenue of EUR 850 million, adjusted EBIT of EUR 80 million and EBT of EUR 72 million expected
Stuttgart, 11 May 2023 – GFT Technologies SE (GFT) continues to grow. With revenue growth of 10 percent, the software group once again outpaced the market in the first quarter of 2023. Adjusted EBIT rose by 17 percent and EBT by 12 percent compared to the same period last year.
GFT confirms guidance for 2023
“Our growth remains stable and we can confirm our guidance for 2023,” says Marika Lulay, CEO of GFT. “Although the global economic environment has become more challenging in recent months, we also see some positive signs. For example, we are growing faster than average in the world’s largest software market, the USA. We also expect demand to pick up further in the second half of the year.”
The GFT Group generated revenue of EUR 190.67 million in the first quarter of 2023. The company thus exceeded the prior-year figure of EUR 173.35 million by 10 percent. GFT continued to successfully implement its diversification strategy: in the Insurance sector, revenue rose by 4 percent, in the Industry & Others sector by 24 percent. In the Banking sector, revenue was up 10 percent on the previous year.
Business made particularly strong progress in the world’s largest software market, the USA, with an increase in revenue of 62 percent. This growth was driven above all by complex modernisation and transformation projects in the finance sector.
Double-digit earnings growth
There was significant growth in earnings compared to the same quarter last year. This was due to structurally strong demand for digitalisation solutions, especially from banks and insurers. EBT of EUR 15.04 million was up 12 percent year on year (Q1 2022: EUR 13.42 million). Adjusted EBIT rose by 17 percent to EUR 16.28 million (Q1 2022: EUR 13.91 million).
The Group had a total of 8,792 full-time employees (FTE) as of 31 March 2023. This corresponds to an increase of 8 percent compared to 8,120 employees at the end of the prior-year quarter.
Financial stability and flexibility remain at high level
Operating cash flow fell year on year to EUR -3.04 million (Q1 2022: EUR 3.62 million), due mainly to a positive special item in the previous year. Net liquidity remained stable at EUR 29.65 million (31 December 2022: EUR 35.70 million). As a result of the increase in net income, the equity ratio rose by one percentage point to 41 percent (31 December 2022: 40 percent).
GFT expects solid revenue and earnings growth for 2023
GFT continues to benefit from the ongoing digitalisation trends in its markets. The Group has outstanding expertise in shaping the digital transformation, enabling it to leverage market opportunities. The company therefore expects growth in all segments in 2023, with further increases in both revenue and earnings.
Compared to 2022, revenue is expected to grow by 16 percent and reach approximately EUR 850 million (2022: EUR 730 million). GFT expects earnings before taxes (EBT) of around EUR 72 million (2022: EUR 66 million). This represents year-on-year growth of 9 percent. The Group forecasts that adjusted EBITDA will improve to around EUR 80 million (2022: EUR 67 million), 19 percent more than in 2022. This guidance takes into account the acquisition of targens GmbH pro rata temporis as of 1 April 2023.
“Our growth remains stable and we can confirm our guidance for 2023. Although the economic environment has become more challenging in recent months, we also see some positive signs. For example, we are growing faster than average in the world’s largest software market, the USA.”
Key figures (IFRS)
(Deviations possible due to rounding differences)
|In EUR million||Q1 2023||Q1 2022||∆|
|Earnings per share in EUR||0.40||0.36||10%|
|Operating cash flow||-3.04||3.62||<-100%|
|Employees (FTE, as of 31 March)||8,792||8,120||8%|
|In EUR million||31/03/2023||31/12/2022||∆|
|Equity ratio (in percent)||41%||40%||1|
* Adjusted for special items from M&A activities and share price-based effects in connection with the measurement of variable management compensation.
Further information on the definition of alternative performance measures is provided here on the GFT website.
GFT stays on track for growth
GFT continues to grow. With revenue growth of 10 percent, the software group once again outpaced the market in the first quarter of 2023. Adjusted EBIT rose by 17 percent and EBT by 12 percent compared to the same period last year.