Completed vwd acquisition to become a top-three financial terminal provider in Europe
“We deliver a significant step-up in revenue in the third quarter driven by the successful execution of our M&A strategy. The integration of vwd Group is well underway and we are working to realize cross- and up-selling opportunities and capture cost synergies. By combining the strengths of our solutions, we will compete across asset classes and fully leverage our top-three position in Europe to drive growth,” said Kristian Nesbak, CEO and founder of Infront.
Q3 2019 EBITDA was negative EUR 0.9 million. EBITDA reflected high transaction-related costs, as well as continued growth investments in the organization. Adjusted EBITDA increased to EUR 2.9 million from adjusted EBITDA of EUR 1.2 million in Q3 2018. Before implementation of IFRS 16, adjusted EBITDA amounted to EUR 2.3 million (EUR 1.2 million).
vwd was included in Infront’s financial accounts from the acquisition date 17 July 2019. Following the acquisition, the Board of Directors approved to change Infront’s presentation currency to Euro (EUR) from Norwegian kroner (NOK) from Q3 2019.
Infront generates most of its revenue from recurring subscription contracts for its services. To date in 2019, Infront has continued to show an underlying growth in subscription revenue, which represented 97% of total sales for the period.
Please find the full financial report and presentation enclosed.
Webcast
CEO Kristian Nesbak and CFO Max Hofer will present the results via a webcast at 10.00 CEST at: https://infrontfinance.com/ir/webcast-q3-2019/
It will be possible to ask questions via e-mail. Send your questions to ir@infrontfinance.com. The presenters are available for questions after the presentation, please schedule a time via the same email. A recording of the presentation will be available on the website shortly after the live webcast has ended.
The interim report and presentation are also available on the investor relations pages at www.infrontfinance.com/investor-relations
- Number of professional users increased from 17.8k in Q3 2018 to 91.0k
- Integration process well underway, focusing on capturing initial cost synergies and exploring up- and cross-selling potential
- Combining the best of Infront and vwd into one solution will enable the group to offer a more competitive multi-asset platform
- vwd Group was the main contributor to Q3 growth with revenue of EUR 14.8 million from the acquisition date 17 July
- Group revenue in Q3 adjusted for acquisitions and foreign exchange effects showed a slight increase compared to Q3 2018
- Revenue for the combined group would have been EUR 86.7 million if vwd Group was consolidated as of 1 January 2019
- Positive impact from inclusion of vwd Group and Infront Italia.
- Actual Q3 2019 EBITDA was negative EUR 0.9 million (positive EUR 1.2 million)
- YTD adjusted EBITDA for the combined group would have been EUR 12.
“We deliver a significant step-up in revenue in the third quarter driven by the successful execution of our M&A strategy. The integration of vwd Group is well underway and we are working to realize cross- and up-selling opportunities and capture cost synergies. By combining the strengths of our solutions, we will compete across asset classes and fully leverage our top-three position in Europe to drive growth,” said Kristian Nesbak, CEO and founder of Infront.
Q3 2019 EBITDA was negative EUR 0.9 million. EBITDA reflected high transaction-related costs, as well as continued growth investments in the organization. Adjusted EBITDA increased to EUR 2.9 million from adjusted EBITDA of EUR 1.2 million in Q3 2018. Before implementation of IFRS 16, adjusted EBITDA amounted to EUR 2.3 million (EUR 1.2 million).
vwd was included in Infront’s financial accounts from the acquisition date 17 July 2019. Following the acquisition, the Board of Directors approved to change Infront’s presentation currency to Euro (EUR) from Norwegian kroner (NOK) from Q3 2019.
Infront generates most of its revenue from recurring subscription contracts for its services. To date in 2019, Infront has continued to show an underlying growth in subscription revenue, which represented 97% of total sales for the period.
Please find the full financial report and presentation enclosed.
Webcast
CEO Kristian Nesbak and CFO Max Hofer will present the results via a webcast at 10.00 CEST at: https://infrontfinance.com/ir/webcast-q3-2019/
It will be possible to ask questions via e-mail. Send your questions to ir@infrontfinance.com. The presenters are available for questions after the presentation, please schedule a time via the same email. A recording of the presentation will be available on the website shortly after the live webcast has ended.
The interim report and presentation are also available on the investor relations pages at www.infrontfinance.com/investor-relations
