The Avaloq group, an international fintech company and leader in integrated and comprehensive banking solutions, reports continued organic top line growth, margin expansion and strong free cashflow for the first half of 2017. Results benefited from increased project activity, strong upselling into the customer base and growth in all lines of recurring revenues from a broad spectrum of customers leveraging Avaloq’s range of on premise software, Software as a Service (SaaS) and transaction processing services.

Financial progress

Avaloq achieved significant progress in the first half of 2017, driven by the benefits of sustained innovation and investment in the banking suite and the accelerating trend of the market towards digital, SaaS and transaction processing services. The underlying growth in recurring revenues further endorses Avaloq’s strategic move to expand its Global Processing Network into Europe and Asia in 2015 and 2016.

Key financial highlights include, compared to the same the period of last year^[1]:

• Increase in adjusted EBITDA of 257% to CHF 36.3 million
• Total revenue increased by 3% year-on-year to CHF 253.1 million
• Total spending was optimised by 8%
• Margins improved by 10.2 points to 14.3%
• Net cash provided by operating activities increased by 272% to CHF 62 million.

Strong Business Momentum

In the first half of 2017, Avaloq continued the positive trend and further reinforced its growth strategy. Highlights include:

• Avaloq partnered with Warburg Pincus to accelerate its long-term growth and value creation strategy. Warburg Pincus acquired 35% of shares from Avaloq employees and management.
• For the first time in its history, Avaloq obtained a rating with Standard & Poor’s as well as Moody’s. Standard & Poor’s assigned Avaloq with the credit rating grade “B”, Moody’s with a “B2”. Both agencies classify Avaloq’s outlook as “stable”.
• Several major software deliveries were completed as part of project Rainbow by Raiffeisen Switzerland, ARIZON and Avaloq, which creates the most modern retail banking platform in Switzerland.
• Avaloq continued its fast-paced project activity: 13 successful going-lives took place at banks including Axion Swiss Bank and BT Financial Group.

“We did an excellent job in maintaining the strong momentum from last year. In the first half of the year, we further strengthened Avaloq’s leading position. We significantly increased profitability, reduced total spending, and in Warburg Pincus have a strong new global partner at our side,” Francisco Fernandez, Group CEO and Chairman of the Board of Avaloq, explains. “With such a wind in our sails, we are very well equipped to take advantage of growth opportunities”, Fernandez continues.

^[1]Results subject to final audit.