MLP

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Inhalt

Q1: MLP repeats previous year's high earnings – further increase in total revenue

  • Total revenue increases to EUR 167.9 million (Q1 2017: EUR 163.0 million)
  • Broad-based growth: further gains in non-life insurance, wealth management and real estate brokerage
  • EBIT amounts to EUR 13.0 million (EUR 12.5 million); Group net profit for the period rises by 8 percent to EUR 9.3 million
  • Outlook confirmed: Despite further increasing investments in the future, EBIT is set to remain at the 2017 operating EBIT level of EUR 46.7 million

Wiesloch, May 15, 2018 – The MLP Group also made a successful start to the 2018 financial year. In the first quarter, total revenue increased by 3 percent to EUR 167.9 million. MLP primarily recorded gains in those consulting areas that have been strategically established and expanded in the last few years: the non-life insurance area, the wealth management area and the real estate brokerage area. At EUR 13.0 million, earnings before interest and tax (EBIT) is 4 % above the previous year. This actually represented a slight reduction in comparison with the operating EBIT (excluding one-off expenses) of EUR 13.3 million that was generated in the first quarter of 2017, yet over the medium term there was a significant increase. Net profit increased by 8 percent to EUR 9.3 million.

"We made a good start to the year and were able to repeat the excellent earnings recorded at the beginning of 2017. After the first three months, we are therefore on schedule to achieve our targets for the year. The trend looks good and is stabilising further," comments Chief Executive Officer, Dr. Uwe Schroeder-Wildberg. "We are increasingly benefiting from the strategic diversification of our revenue streams that we have performed over the last few years. We are keen to continue along this path."

Total revenue increased to EUR 167.9 million

Total revenue rose to EUR 167.9 million in the first quarter (Q1 2017: EUR 158.9 million). At EUR 160.4 million, commission income made the greatest contribution to this (EUR 153.8 million). Interest income was EUR 4.4 million and was thus slightly below the previous year's figure (EUR 5.1 million).

The breakdown by consulting fields shows a growth of 6 percent in the non-life insurance business, in which revenue increased from EUR 52.8 million to EUR 56.2 million. This reflects positive development both at the subsidiary DOMCURA and in MLP's private client business. In the wealth management area, revenue increased from EUR 45.7 million to EUR 47.5 million despite significantly lower performance-based remuneration (performance fees) than in the same period of the previous year. This rise can primarily be attributed to extremely positive development of new business both at the subsidiary FERI and in MLP's private client business. At EUR 33.9 billion, assets under management remained stable as of March 31, 2018 (December 31, 2017: EUR 33.9 billion). Successful development was also once again enjoyed by the real estate brokerage area, which saw revenue rise to EUR 4.9 million (EUR 3.4 million), as well as the loans and mortgages area with sales revenue of EUR 5.2 million (EUR 3.8 million). At EUR 11.7 million, revenue in the health insurance area is slightly below the previous year's figure (EUR 11.9 million). In the old-age provision area, MLP was able to increase the brokered premium sum of new business by around 13 percent to EUR 638.2 million (EUR 566.7 million), although revenue declined by 4 percent to EUR 33.7 million (EUR 35.2 million). Initial adoption of the new IFRS 15 accounting standard is the primary reason for the weaker revenue development. Furthermore, new business is not yet fully reflected in revenue.

EBIT increases to EUR 13.0 million

EBIT rose to EUR 13.0 million in the first quarter (EUR 12.5 million). In the same period of the previous year, one-off costs of EUR 0.8 million were accrued for further optimisation of the Group structure, meaning that operating EBIT in Q1 2017 was EUR 13.3 million. MLP is not anticipating any one-off expenses in 2018. The mid-term EBIT comparison (Q1 2016: EUR 8.8 million, Q1 2015: EUR 7.0 million, Q1 2014: EUR 3.4 million) underlines the successful development recorded at the start of 2018. The net profit for the period rose to EUR 9.3 million (EUR 8.6 million).

MLP Group supports 532,100 family clients and 20,200 corporate clients

As of March 31, 2018, the MLP Group served 532,100 family clients (December 31, 2017: 529,100). The gross number of newly acquired family clients was 4,000 in the first quarter (Q1 2017: 4,900). The Group also serves 20,200 corporate and institutional clients (December 31, 2017: 19,800). As of March 31, some 1,890 client consultants were working for MLP (December 31, 2017: 1,909). Due to the accelerated efforts to recruit new consultants in the university segment, the typical seasonal dip at the start of the year was less pronounced than in previous years. Alongside the recruitment figures, the number of leads and applicants also displayed positive development.

Outlook confirmed

As announced with the figures for the financial year 2017, MLP is investing around EUR 7 million of additional funds in the further development of the university segment in 2018. Despite these investments in the future, MLP is anticipating stable EBIT for 2018 at around the 2017 level of operating EBIT (2017: EUR 46.7 million). Since no one-off expenses are to be accrued in 2018, this means a significant increase over the EBIT of EUR 37.6 million recorded in 2017. "We are on the right track and are happy to confirm our annual target. However, our market environment still harbours risks and we must fight hard for our success," comments Chief Financial Officer, Reinhard Loose.

Overview of the key figures

MLP Group (in EUR million) Q1/2018 Q1/2017 Change in %
Revenue 164.7 158.9 4
Commission income 160.4 153.8 4
Interest income 4.4 5.1 -14
Other revenue 3.2 4.0 -20
Total revenue 167.9 163.0 3
Operating EBIT 13.0 13.3 -2
Earnings before interest and taxes (EBIT) 13.0 12.5 4
Earnings before taxes (EBT) 12.6 12.0 5
Net profit for the period 9.3 8.1 8
Earnings per share (diluted/basic) in EUR 0.09 0.08 13
Family clients 532,100 529,100* 1
Corporate, institutional clients 20,200 19,800* 2
Client consultants 1,890 1,909* -1

*) As at December 31, 2017