- Growth driven by Asia, as well as by Middle and Back office solutions
GL TRADE, a global provider of integrated cross-asset, front-to-back, multi-market software solutions for financial institutions, has posted a turnover of â¬108.2m for the first half 2008, an increase of 15% over the revenue for the first half 2007 (and of 22% at constant exchange rate).
These figures include acquisitions made in 2007 (FNX in March, Infotec in July and Decision Software in November). At constant exchange rates, organic growth is 10%.
GL TRADE has continued its stable expansion in spite of difficult market conditions. The company has met its organic growth target objectives thanks to its product and geographic footprint as well as its recurring business model.
Front Office solutions (Trading System and Client Connectivity) are up 5% at constant exchange rates. GL TRADEâs development on equity markets in the US and robust growth in Brazil and Mexico were offset by contract cancellations late 2007 and by a general market slowdown in the Americas, where the business line recorded a decrease in revenue. Europe maintains a healthy positive trend thanks to MiFID and Best Execution-related projects. Last but not least, Asia recorded a very strong growth across all countries and remains a revenue driver for the front office business lines, thus increasing the weight of this region in the overall front office business.
Turbulent markets in the first half of the year have stimulated demand for upgrading internal control procedures and risk management. This boosted demand for Middle and Back-Office solutions. Post Trade Derivatives revenue grew by 45% at constant exchange rates (+52% in Europe, +63% in Asia, +22% in the US) fuelled by both existing clients licence renewals and new client acquisitions. Post Trade Securities revenue rose 23% and made a noticeable breakthrough in Asia.
The Capital Market Solutions business line, which include Tradix and FNX, the later company acquired in 2007, saw revenue drop 10% on a like for like basis and at constant exchange rate. This is due to the shift from a licence-based model to a recurring revenue model that provides stability from market turmoil. In the first half of 2008, the recurring contracts have gone up by 13% at constant exchange rates.
The Information Services business line which was created following the Infotec acquisition in 2007 has posted a 19% revenue increase, at constant exchange rates, predominantly in Switzerland and in the UK.
Decision Software, acquired in November 2007, continues to do well, with a 45% growth in revenue at constant exchange rates.
Outlook for the remainder of 2008
First half results and the second quarter order book which will impact Q3 revenue allow us to confirm our organic growth rate target for 2008 between 9% and 10% at constant rates.
Final earnings figures for the first half will be published on 27 August 2008 after the market closes. First half figures will be presented to financial analysts (SFAF) on 28 August 2008 at GL TRADE offices, 46 Rue Notre Dame des Victoires, 75002 Paris, in the Antilles Room.