OVB defies crisis on the financial markets - sales and earnings rise significantly in first 9 months
Cologne (euro adhoc) -
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companies/Company
OVB defies crisis on the financial markets - sales and earnings rise significantly in first 9 months
-Consolidated sales up 8.3% -Consolidated net profit increase of 21.5% -Dividend per share increase to EUR1.35 planned
Cologne, 6 November 2008 - OVB Holding AG recorded sales (total sales commission) of EUR194.6 million in the first 9 months of 2008. This amount is 8.3% or EUR14.9 million above the figure for the corresponding period of the previous year (EUR179.7 million). Michael Frahnert, Chairman of the Executive Board of OVB Holding AG, emphasised that "OVB is and remains a growth company -even in difficult times".
OVB´s decisive advantage is its broad-based international presence. Of all regions, Central and Eastern Europe again delivered the strongest contribution to sales in the first nine months of the fiscal year, with an increase of 20.4% or EUR15.9 million to EUR94.1 million (EUR78.2 million). In Southern and Western Europe, sales increased by 7.1% to EUR39.6 million year-on-year (EUR37.0 million) between January and September 2008.
In Germany, sales remained below the level of the corresponding period of the previous year at EUR60.9 million. Uncertainty about future economic development caused customer restraint in respect to new long-term investments - even with regards to investment in their own retirement plans. Michael Frahnert appeared convinced saying, "We think that this status will be of a temporary nature".
Earnings before interest and taxes (EBIT) remained unchanged to the previous year at EUR22.3 million. This was mainly due to the targeted strengthening of human resources in areas dealing with sales, the opening of new offices and the expansion of sales services. Michael Frahnert summarises OVB´s long-term oriented strategy, "We are maintaining steady growth, investing in strengthening our sales, therefore benefiting from the next upturn in the market". Despite expenditure to advance growth, the consolidated EBIT margin remained at the acceptable level of 11.5% (previous year: 12.4%) for the first 9 months of 2008.
Net profit for the first nine months of 2008 was up 21.5% year-on-year or EUR3.4 million to EUR19.2 million. Basic earnings per share increased to EUR1.35 compared to EUR1.11 in the first nine months of 2007.
The number of customers increased again. Between January and September 2008, OVB gained 102,900 new customers across Europe; within the year there were 175,800. By the end of the reporting period, OVB´s customer portfolio consisted of 2.71 million customers across the whole of Europe.
The number of full-time advisors has been expanded by 457 or 10.1% to 4,966 since the balance sheet date of the previous year.
OVB believes its annual sales and earnings forecasts to be confirmed by the good progress of the first nine months. With at least a double-digit growth in sales and earnings, the company wants to continue on its path of growth. Against the backdrop of this good progress, the Executive Board will propose to the Supervisory Board that the dividend be increased to EUR1.35 per share.
About OVB Group
OVB Group, with its holding company headquartered in Cologne, is one of the leading European financial sales organisations. Since the formation of OVB Vermögensberatung AG in Germany in 1970, customer-oriented consulting for private households in the areas of insurance coverage, asset building and appreciation, pension provision and real estate acquisition have formed the focus of OVB´s business activities. OVB currently advises more than 2.7 million customers across Europe, working in cooperation with over 100 renowned product partners. OVB is presently active in 14 countries, with some 4,900 full-time financial consultants working for the Group. In 2007, OVB Holding AG - which has been listed on the Frankfurt Stock Exchange (Prime Standard) since July 2006 - and its subsidiaries generated total sales commission of EUR246.2 million and EBIT of EUR29.0 million.
Key figures for the OVB Group 9M/2008:
Key operating figures:
Unit 01/01 - 01/01 -
30/09/2007 30/09/2008 Change
Clients
(30/09) Number
million 2.54 2.71 + 6.7 %
Financial
advisors
(30/09) Number 4,509 4,966 + 10.1 %
New
business Number 404,902 437,385 + 8.0 %
Total
sales
commiss. Euro million 179.7 194.6 + 8.3 %Key financial figures:
Unit 01/01 - 01/01 -
30/09/2007 30/09/2008 ChangeEBIT) Euro
million 22.3 22.3 ± 0.0 %
EBIT
margin* % 12.4 11.5 - 0.9 %-pts.
Consolidated
net income
Euro million 15.8 19.2 + 21.5 %
EPS
(undiluted) Euro 1.11 1.35 + 21.6 %* Based on total sales commission
Key figures by region 9M/2008
Unit 01/01 - 01/01 -
30/09/2007 30/09/2008 ChangeCentral and Eastern Europe:
Clients (30/09) Number million 1.57 1.70 + 8.3 % Financial
advisors (30/09) Number 2,521 2,965 + 17.6 % Total sales
commission Euro million 78.2 94.1 + 20.4 % EBIT Euro million 16.6 16.9 + 1.8 % EBIT margin* % 21.2 18.0 - 3.2 %-pts.
Germany:
Clients (30/09) Number 678,600 692,350 + 2.0 % Financial
advisors (30/09) Number 1,249 1,252 ± 0.0 % Total sales
commission Euro million 64.5 60.9 - 5.6 % Brokerage income Euro million 47.9 44.0 - 8.2 % EBIT Euro million 5.9 5.1 - 13.6 % EBIT margin* % 9.1 8.4 - 0.7 %-pts.
Southern and Western Europe:
Clients (30/09) Number 285,800 313,850 + 9.8 %
Financial advisors (30/09) Number 739 749 + 1.3 % Total sales
commission Euro million 37.0 39.6 + 7.1 % EBIT Euro million 5.3 4.9 - 7.5 % EBIT margin* % 14.3 12.4 - 1.9 %-pts.
* Based on total sales commission
end of announcement euro adhoc
Further inquiry note:
Brigitte Bonifer
Investor Relations
Tel.: +49 (0)221 2015 288
E-Mail: bbonifer@ovb.de
Branche: Financial & Business Services
ISIN: DE0006286560
WKN: 628656
Index: CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade