IT solutions provider GFT Group reported a 42 percent increase in its consolidated revenues for the first nine months of 2015, to $291.23 million, driven mainly by the financial service sector, the company said in a press release.
Acquisitions Help Organic Growth
The demand that fuelled the increase had to do with greater regulatory pressure on the financial services sector for compliance with new requirements. The other leading factor that underpinned GFT Group’s positive results was the shift towards the digital among retail banks, the company noted. In addition to these organic growth drivers, GFT said, the acquisition of UK Rule Financial – an IT service and consultancy provider – and Spanish Adesis Netlife – a provider of web development, communications and marketing services – also contributed to the positive results.
“Adapting IT systems to growing compliance requirements will continue to be a major challenge for all financial institutions.”
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Earnings before interest, tax, amortization and depreciation (EBITDA) rose by 38 percent to $33.58 million, and pre-tax profits came in at $24.49 million, up 26 percent from $19.39 million for the first nine months of 2014.
Full-Year Guidance Revised Upwards
Based on the positive results so far this year, GFT Group has revised upwards its full-year financial performance guidance. The company now expects to generate consolidated revenues of $397.25 million, up from the previous projection of $$389.72 million. EBITDA is now seen at $47.37 million, and pre-tax profits are expected to reach $33.37 million, both revised up by $1.8 million.
Commenting on the results, the Chief Executive Officer of GFT Technologies SE, the group’s core business division, Ulrich Dietz said: “Adapting IT systems to growing compliance requirements will continue to be a major challenge for all financial institutions. In addition, retail banks need to digitise their business processes even more and make them more customer-centric if they are to fight off the challenge from innovative niche competitors from the fintech sector. We see great potential in this future market and aim to build on our position as the leading provider of digital financial solutions.”