05.11.2013
MLP AG DE0006569908
MLP AG: MLP AG adjusts its forecast for the financial year 2013 to more difficult market conditions
(DGAP-Media / 05.11.2013 / 18:12)
MLP AG adjusts its forecast for the financial year 2013 to more difficult
market conditions
- Old-age provision impacted by uncertainties such as low interest rate
phase
- Wait and see attitude in health insurance as a result of political
uncertainties
- Pleasing development in wealth management, loans and mortgages as well
as non-life insurance demonstrates high intensity of consulting
- Efficiency management programme implemented over the past few years and
broadened revenue base provide the foundation for continued solid
earnings development
- EBIT target range of EUR 65 to 78 million reiterated for the financial
years 2014 and 2015
Wiesloch, 5th November 2013 - Based on the preliminary key figures for the
first nine months of 2013 and on business development in the first few
weeks of the fourth quarter, MLP is revising its expectations for the full
year. The company is thereby taking account of the increased market burdens
in old-age provision and in health insurance, to which it has already
alluded during the course of recent months. For the full year 2013, the
management continues to anticipate solid earnings development but no longer
expects to achieve earnings before interest and tax (EBIT) of at least EUR
65 million. For the financial years 2014 and 2015 MLP reiterates its EBIT
forecast, which is expected to range within a corridor of EUR 65 to 78
million.
According to preliminary key figures MLP generated stable total revenue of
EUR 338.8 million in the first nine months of 2013 (9M 2012: EUR 355.3
million) and EBIT of EUR 12.3 million (9M 2012: EUR 26.4 million). Third
quarter EBIT amounted to EUR 7.3 million (Q3 2012: EUR 11.0 million), this
is largest quarterly contribution so far in this financial year. Compared
to the previous quarter, total revenue rose by 6 percent to EUR 114.5
million (Q2 2013: EUR 107.9 million), but remained below the corresponding
quarter of the previous year (Q3 2012: EUR 121.5 million).
In its business model, MLP traditionally generates the majority of its
revenue and earnings in the fourth quarter. Since September MLP has
registered a pick-up in business compared to the previous months. However,
as a result of the prevailing market conditions, business development
remained below the high level of momentum achieved in the preceding years
so far. This situation also continued in October and in the first few days
of November.
Nevertheless, the number of consulting appointments remains high - an
aspect which resulted in pleasing development in the areas of wealth
management and non-life insurance as well as in loans and mortgages.
However, MLP recorded significant decreases in old-age provision and in
health insurance. In private health insurance many clients remain hesitant
due to the public debate prior to the German parliamentary elections as
well as to the still undecided issues associated with the formation of the
new federal government. In old-age provision the current low interest rate
environment, negative reports about life insurance contracts and fears
about possible post-election tax increases have led to even greater
hesitancy on the part of clients throughout the industry.
Administration costs continued to show pleasing development, decreasing in
the first nine months to below the previous year's level. The number of
consultants fell slightly to 1,996 (30th June 2013: 2,012).
'It is evident that a hold-up in old-age provision has arisen within the
population, which is resulting in significantly less new business
throughout the industry - and MLP cannot completely escape the effects of
this development,' comments Chief Executive Officer Dr. Uwe
Schroeder-Wildberg. 'However, we have demonstrated that we are able to cope
with difficult market phases and have structured the company accordingly
during the past few years. Since 2008, we have reduced the administration
costs by EUR 60 million, as well as establishing stable sources of revenue
in the form of wealth management and our occupational pensions business.
Thanks to our modified revenue mix we were able to compensate for the
significantly lower revenue from private old-age provision. MLP is robustly
structured and will also generate solid earnings in 2013. During the coming
weeks through to the end of the year, we expect to see a further pick-up in
business development.'
The detailed results of the third quarter and of the first nine months of
2013 will be published, as announced, on 14th November 2013.
About MLP:
MLP is Germany's leading independent consulting company. Supported by
comprehensive research, the Group provides a holistic consulting approach
that covers all economic and financial questions for private and corporate
clients, as well as institutional investors. The key aspect of the
consulting approach is the independence from insurance companies, banks and
investment firms. The MLP Group manages total assets of more than EUR 22
billion and supports more than 820,000 private and 5,000 corporate clients
or employers. The financial services and wealth management consulting
company was founded in 1971 and holds a full banking licence
The concept of the founders, which still remains the basis of the current
business model, is to provide long-term consulting for academics and other
discerning clients in the fields of provision, financial investment, health
insurance, insurance, loans and mortgages and banking. Private individuals
with assets of over EUR 5 million and institutional clients benefit from
extensive wealth management and consulting services as well as receiving
economic forecasts and ratings provided by the subsidiaries of the Feri
Group. Supported by its subsidiary TPC, MLP also provides companies with
independent consulting and conceptual services in all issues pertaining to
occupational pension schemes and remuneration as well as asset and risk
management.
End of Media Release
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Issuer: MLP AG
Key word(s): Finance
05.11.2013 Dissemination of a Press Release, transmitted by DGAP - a
company of EQS Group AG.
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Language: English
Company: MLP AG
Alte Heerstraße 40
69168 Wiesloch
Germany
Phone: +49 (0)6222-308-1135
Fax: +49 (0)6222-308-8351
E-mail: [email protected]
Internet: www.mlp-ag.de
ISIN: DE0006569908
WKN: 656990
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard),
Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg,
Hannover, München; Terminbörse EUREX
End of News DGAP-Media
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