The Avaloq group, an international fintech company and leader in integrated and comprehensive banking solutions, reports organic top line growth, margin expansion and strong cash generation for the 2016 fiscal year. 6 new customers joined the Avaloq Community, while 28 going-live projects were completed.
Avaloq generated full year revenues of CHF 533 million1 in 2016, an increase of 10% on a reported basis from CHF 485 million in the previous year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 41% to CHF 82 million from CHF 58 million in 2015, a year characterised by significant up-front investments in new digital banking technologies, Software as a Service (SaaS) solutions and integrated BPO offerings. EBITDA margin improved year over year by 3.4 points to 15.4%. The company enjoyed strong cash flows with net cash provided by operating activities increasing by 100% to CHF 62 million and an 8% year over year increase in cash on hand to CHF 63 million. Net debt leverage at year end was 1.5x EBITDA.
Francisco Fernandez, CEO of Avaloq: “2016 was another proof point for the attractiveness of our business model. We achieved strong revenue growth and higher profitability while continuing to invest in our offering. Having largely completed our transformation from a pure play software company to an integrated service provider, we are confident that we will successfully leverage our investments in 2017 and beyond. As reflected in our enhanced financial transparency, we want to also make further progress on our path to capital-market readiness.”
The Avaloq group reports its results on an IFRS basis consistent from year to year inclusive of all necessary charges, provisions and accruals reflecting the operations of the business.
Avaloq continued to expand its business in 2016, invested in further growth and completed major projects:
Avaloq serves banks and wealth managers worldwide who managed assets of over CHF 4’000 billion using Avaloq solutions. Reflecting the growth of its business, Avaloq continued to create additional jobs and has employees from 66 nations.
1 Results subject to final audit.