CREALOGIX reports record sales for the third time in a row

18 September 2018

CREALOGIX looks back to a successful financial year 2017/2018. Never before have so many new licenses and projects been concluded. “Our passion is to empower our customers on their journey to a successful digital future. Through an intensive exchange with them, we realise new user-friendly digital solutions for Retail Banking, Corporate Banking and Wealth Management, taking new market requirements into account” says Thomas Avedik, President & Chief Executive Officer of CREALOGIX.

The Group maintained its market leading position in Europe and expanded globally: With the acquisition of the digital banking supplier “Innofis” in January 2018, CREALOGIX establishes itself in Middle East. It enhances its product portfolio and expertise in the field of “Islamic Banking”. This also paves the way to new opportunities in the Asian region, e.g. Malaysia. Therefore, and thanks to a new digital banking project for a large Swiss private bank in Singapore, the local organization was strengthened. In addition, in North America a major Canadian bank is now using CREALOGIX solutions to digitize its asset management process.

Strong performance reflected in results
CREALOGIX is profitable, healthy and stable heading into the future. In the financial year 2017/2018, sales increased by 16.4% from CHF 74.9 million to CHF 87.1 million. This corresponds to a growth of 13.1% in local currencies. At 57%, the majority of the revenue was generated internationally (Europe, Asia / Pacific, Middle East). At CHF 7.0 million, profitability (EBITDA) was slightly below previous year’s level (CHF 7.3 million). The EBITDA margin reached 8.1%, which was slightly below the previous year’s level. This is mainly due to a pleasingly earlier than expected customer switch from a traditional initial license model to the rental model (Software-as-a-Service ‘SaaS’). This switch will furthermore increase the future recurring revenues.

Open Banking on the rise
Various international surveys commissioned by CREALOGIX among 3,000 bank customers between the ages of 18 and 45 demonstrate the importance of digital and mobile banking. In Switzerland, 80% of respondents stated that everyday services such as referrals were also or exclusively to be carried out online. The demand for open-banking applications, which allow access to all financial services from different providers via a single app, is also growing. Over 60% of respondents in the UK and more than 65% of Germans surveyed would welcome such an application. Among the Swiss, this figure is more than 40%. “The more informed customers are about the positive effects of open banking, the stronger their demand for corresponding solutions. The open platform strategy with the ‘Digital Banking Hub’ as centrepiece enables financial services institutions to adding third-party offers to their portfolio, thereby taking a major step closer to customer needs” says Richard Dratva, Chief Strategy Officer of CREALOGIX.

Serving Mobile
Asked about the preferred digital banking method – on desktop or via mobile – in both Switzerland and Germany, the majority prefers to do the services “traditionally” on their desktops. However, a considerable and steadily growing part already prefers mobile banking. As a leading provider in this area (according to IDC MarketScape), CREALOGIX is taking advantage of this preference with its newly developed “Mobile Application Platform”. Financial service providers can use it to combine various applications in one secure app. Bank customers access all financial information and services on a single platform and have a seamless banking experience.

For the full annual results announcement and further investor relations materials, please visit:
https://crealogix.com/uk/news/driver-open-banking-crealogix-reports-record-sales-for-the-third-time-in-a-row/

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