23.02.2017
MLP AG DE0006569908
MLP AG: FY 2016: MLP significantly increases revenue and operating EBIT
DGAP-Media / 23.02.2017 / 07:33
FY 2016: MLP significantly increases revenue and operating EBIT
- Total revenue up 10.1 percent to EUR 610.4 million (EUR 554.3 million)
- Operating EBIT rises by 14.3 percent to EUR 35.1 million (EUR 30.7
million)
- Old-age provision: MLP benefits from early adoption of new
guarantee concepts and wins market shares
- Executive Board proposes a dividend of 8 cents per share (12 cents) -
distribution rate is within the announced corridor
- Outlook for 2017: As announced, operating EBIT (before one-off
expenses) is expected to increase to at least EUR 45 million
Wiesloch/Frankfurt, 23rd February 2017 - The MLP Group ended the financial
year 2016 with significant gains in important key figures. Total revenue
rose 10.1 percent to EUR 610.4 million, while the operating earnings before
interest and tax (operating EBIT) increased by 14.3 percent to EUR 35.1
million. MLP benefited from further diversification of its revenue base,
particularly through gains in the non-life insurance area. At the same
time, MLP was able to record increases in the old-age provision for three
quarters in succession, while revenue in this consulting area was 7.4
percent higher in the final quarter than in the same period of the previous
year. The premium sum of new business increased by 6.2 percent in 2016 - in
comparison with an average market increase of just 1.5 percent. MLP won a
total of 20,500 new family clients in 2016 - this represents an increase of
10.8 percent over the same period of the previous year.
As announced, one-off expenses of EUR 15.4 million were accrued in the last
financial year within the scope of the efficiency programme. In light of
this, earnings before interest and taxes (EBIT) declined to EUR 19.7
million, while net profit for the period declined to EUR 14.7 million. On
the basis of this earnings development, the Executive Board proposes a
dividend of 8 cents per share (12 cents). At 60 percent, the distribution
rate is within the announced corridor of between 50 and 70 percent of net
profit for the period.
"MLP achieved more in 2016 than could have been expected at the start of
the year. We further diversified our revenue basis and increased market
shares, accelerated the process for winning new clients and laid the
foundations for structural cost reductions. Given the market conditions in
which we were operating, we are satisfied with the financial year overall,"
explains Chief Executive Officer, Dr. Uwe Schroeder-Wildberg. "With these
steps, we also continued our strategic approach of establishing an even
broader basis for MLP and making it less dependent on short-term market
influences."
FY 2016: Total revenue increases to EUR 610.4 million
Total revenue rose by 10.1 percent to EUR 610.4 million in 2016 (2015: EUR
554.3 million). MLP thereby benefited from considerable growth in the non-
life insurance area, in which revenue grew from EUR 54.9 million to EUR
105.6 million. Around EUR 68.7 million of this can be attributed to the
ongoing positive development of the DOMCURA subsidiary acquired mid 2015.
Revenue in the old-age provision increased by 2.7 percent to EUR 221.5
million (EUR 215.7 million) - despite the fact that the previous year's
figure included a one-off positive effect resulting from the correction of
an incorrect settlement by a product partner. This successful development
is primarily down to a strong closing quarter, in which revenue rose by 7.4
percent to EUR 94.3 million (Q4 2015: EUR 87.8 million). This means that
MLP recorded gains in the old-age provision area for three quarters in
succession in 2016. At EUR 3,688.6 million, the premium sum of new business
generated in the financial year was 6.2 percent above the previous year
(2015: EUR 3,473.2 million), while growth in the overall market was just
1.5 percent. One key reason for the successful development enjoyed by MLP
was its ability to adapt quickly to new product requirements and client
demands: Whereas just under 50 percent of contracts in the market were
brokered with classic guarantees in 2016, this figure made up just 14
percent of the newly brokered contracts at MLP. Instead, 72 percent of
clients opted for new types of guarantees and 14 percent preferred purely
unit-linked policies. "Just like the introduction of the Riester and the
basic pension, we were fast to adapt to altered client requirements and
market conditions. This was an important foundation for our success in 2016
and also represents an excellent basis for the future," explains Uwe
Schroeder-Wildberg.
At EUR 166.4 million (EUR 166.0 million), revenue in the wealth management
area remained virtually unchanged at the record level recorded in the
previous year, despite the sale of FERI EuroRating Services AG in mid 2016.
The assets under management at FERI and MLP Finanzdienstleistungen AG
continued to display positive development and were EUR 31.5 billion as of
31st December 2016 (30th September 2016: EUR 30.0 billion). At EUR 45.8
million, revenue generated from the area of health insurance remained at
the same level as the previous year (2015: EUR 45.9 million). MLP was also
able to increase its market share in this consulting area. Although the
number of persons holding comprehensive private health insurance declined
throughout the market for the fifth time in succession, MLP was actually
once again able to record a slight increase. With revenue of EUR 15.4
million (EUR 16.2 million), the loans and mortgages area is slightly below
the record level recorded in the previous year. At EUR 15.4 million (EUR
15.6 million), other commission and fees, which are mainly attributable to
the real estate brokerage, remain at the previous year's level.
Operating EBIT increases to EUR 35.1 million
Operating EBIT (before one-off exceptional costs) increased by 14.3 percent
to EUR 35.1 million (EUR 30.7 million) in the financial year. As announced,
one-off exceptional costs were accrued within the scope of the efficiency
programme. These amounted to EUR 15.4 million, resulting in an EBIT of EUR
19.7 million (EUR 30.7 million). The one-off exceptional costs also have an
effect on the net profit for the period of EUR 14.7 million (EUR 19.8
million).
Q4: Total revenue 2.8 percent up on previous year
Taking the fourth quarter on its own, total revenue increased by 2.8
percent to EUR 191.7 million compared to the same period of the previous
year (Q4 2015: EUR 186.5 million). The old-age provision in particular
enjoyed positive development with growth of 7.4 percent (from EUR 87.8
million to EUR 94.3 million). Operating EBIT was EUR 19.3 million, while
EBIT including one-off exceptional costs of EUR 11.1 million was EUR 8.2
million (EUR 23.3 million). The net profit for the period was EUR 5.1
million (EUR 16.1 million).
MLP serves 517,400 family clients and 19,200 corporate clients
As of 31st December 2016, the MLP Group served 517,400 family clients (30th
September 2016: 514,600). The gross number of newly acquired family clients
increased by 10.8 percent to 20,500 in the financial year (2015: 18,500).
In addition MLP serves 19,200 corporate and institutional clients (30th
September 2016: 18,600). As of 31st December 2016, 1,940 client consultants
worked for MLP (30th September 2016: 1,924); on 31st December 2015 this
figure was 1,943.
2017: Operating EBIT shall rise to at least EUR 45 million
As communicated just a few days ago, MLP will further optimise its group
structure in the financial year 2017 and is set to bundle its regulated
banking business in a new company. Implementation of the measures should
lead to a significant increase in free own funds. MLP is thereby
significantly extending its scope for action, above all for investments and
acquisitions, but also in terms of its dividend distribution. Another focus
will be on strengthening the university segment with the aim to accelerate
the acquisition of new clients and consultants. In addition to this, MLP
will continue to pursue further diversification of its revenue basis and
implementation of its digitalisation strategy.
In the past year, MLP laid the foundations for significantly reducing the
cost base of administrative expenses relative to 2015 from 2017 onwards. In
2017, this low cost base will - as already announced - be subjected to
additional expenses of around EUR 9 million for the implementation of the
new Group structure. Despite these one-off exceptional costs, MLP is
anticipating an EBIT of at least EUR 36 million. This corresponds to an
operating EBIT of at least EUR 45 million. "With implementation of the
altered group structure, we are significantly extending our entrepreneurial
and economic scope for action. This is an important investment in our
future. At the same time, we are targeting a further increase in earnings,"
explains Chief Financial Officer, Reinhard Loose.
MLP will present the details of its business development during 2016 and on
its further strategy today at 10 a. m. during the annual press conference.
An overview of key figures
MLP Group Q4/2016 Q4/2015 Change 12 12 months Change
(in EUR million) in % months 2015 in %
2016
Revenue 186.1 178.4 4.3 590.6 535.7 10.2
Commission 181.2 173.2 4.6 570.1 514.3 10.8
income
Interest income 4.9 5.3 -7.5 20.5 21.4 -4.2
Other revenue 5.6 8.1 -30.9 19.8 18.7 5.9
Total revenue 191.7 186.5 2.8 610.4 554.3 10.1
Operating EBIT 19.3 23.3 -17.2 35.1 30.7 14.3
Earnings before 8.2 23.3 -64.8 19.7 30.7 -35.8
interest and tax
(EBIT)
Earnings before 7.7 22.9 -66.4 18.7 28.0 -33.2
tax (EBT)
Net profit 5.1 16.1 -68.3 14.7 19.8 -25.8
Earnings per 0.05 0.15 -66.7 0.13 0.18 -27.8
share (diluted/
basic) in euros
Family clients 517,400 514,600*
Corporate, 19,200 18,600*
institutional
clients
Client 1,940 1,924*
consultants
*) 30th September 2016
About MLP:
The MLP Group is the partner for all financial matters - for private
clients as well as for companies and institutional investors. With our four
brands, each of which enjoys a leading position in their respective
markets, we offer a broad range of services:
- MLP Finanzdienstleistungen AG: The dialogue partner for all financial
matters
- FERI AG: The investment expert for institutional investors and high
net-worth individuals
- DOMCURA AG: The underwriting agency focusing on private and commercial
non-life insurance products
- TPC GmbH: The specialist in occupational pension provision management
for companies
The views and expectations of our clients always represent the starting
point in each of these fields. Building on this, we then present our
clients with suitable options in a comprehensible way so that they can make
the right financial decisions themselves. For the implementation, we
examine the offers of all relevant product providers in the market. Our
product ratings are based on scientifically substantiated market and
product analyses. Manfred Lautenschläger and Eicke Marschollek founded MLP
in 1971. Just under 2,000 client consultants and almost 1,800 employees
work at MLP.
End of Media Release
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Issuer: MLP AG
Key word(s): Finance
23.02.2017 Dissemination of a Press Release, transmitted by DGAP - a service
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Language: English
Company: MLP AG
Alte Heerstraße 40
69168 Wiesloch
Germany
Phone: +49 (0)6222-308-8320
Fax: +49 (0)6222-308-1131
E-mail: [email protected]
Internet: www.mlp-ag.de
ISIN: DE0006569908
WKN: 656990
Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Munich, Tradegate Exchange
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