Wiesloch, May 12, 2022 – The MLP Group was able to continue its successful development of previous quarters in Q1 2022. Total revenue increased by 15 percent to EUR 254.7 million. The company was able to record gains across all fields of consulting and in virtually all parts of the MLP Group. Real estate revenue enjoyed a particularly strong increase (up 131 percent), followed by non-life insurance revenue (up 23 percent) and loans and mortgages revenue (up 17 percent). At EUR 34.6 million, earnings before interest and tax (EBIT) were substantially above the previous year's level (Q1 2021: EUR 21.8 million). Alongside successful operational development, other contributing factors were the first-time earnings contribution of the Industrial Broker segment in a first quarter and a positive valuation-effect at MLP Banking AG. As anticipated, the profit contribution from performance-based compensation was lower than in the same period of the previous year in light of the weak development of the capital markets.
"We enjoyed an excellent start to the current year, a year in which the macroeconomic pressures increased even further as a result of the war in Ukraine and the already high rate of inflation. The fact that we are so close to our clients in all parts of the MLP Group and provide perfectly tailored solutions at a high level is really paying off – especially since we are operating in a market environment that has become extremely difficult. Indeed, we are now benefiting more than ever from our efforts over the last few years to establish a significantly diversified and highly stable position for the MLP Group. We are also keen to further expand the successfully established Industrial Broker segment“, comments Chief Executive Officer Dr. Uwe Schroeder-Wildberg.
Total revenue rose by 15 percent in the first quarter and set a new high at EUR 254.7 million (Q1 2021: EUR 221.4 million). Commission income (revenue from commission and fees) increased by 14 percent to EUR 238.8 million (EUR 210.4 million), while revenues from real estate development increased from EUR 2.0 million to EUR 7.6 million. Interest income was slightly above the previous year's figure at EUR 3.6 million (EUR 3.3 million).
In the last quarter, MLP was able to generate growth across all fields of consulting, above all in real estate. The particularly strong increase recorded here of 131 percent from EUR 8.7 million to EUR 20.1 million can primarily be attributed to the successful project business at DEUTSCHLAND.Immobilien, although real estate brokerage (primarily driven by MLP consultants) also contributed to this. Non-life insurance recorded the second-highest growth rate of 23 percent from EUR 67.1 million to EUR 82.2 million. The first-time consolidation of the Industrial Broker segment in a first quarter also had an effect here. Both DOMCURA and MLP's private client business also enjoyed positive development. The non-life insurance portfolios managed by the MLP Group rose from EUR 554.6 million as of December 31, 2021 to EUR 583.2 million as of March 31, 2022. Loans and mortgages recorded the third-highest revenue growth of 17 percent from EUR 4.8 million to EUR 5.6 million. It became clear here that property purchasers or owners were keen to make use of the still historically low interest rate level in anticipation of rising lending rates.
Wealth management recorded a 5 percent increase in revenue from EUR 77.3 million to EUR 81.2 million. As anticipated, the profit contribution of performance-based compensation was significantly lower than in the same quarter of the previous year. This is due to negative developments on the capital markets. In light of further net cash inflows at both FERI and MLP Banking AG, the assets under management in the Group remained stable at the previous record level of EUR 56.6 billion (March 31, 2022) despite the declines observed on the capital markets (December 31, 2021: EUR 56.6 billion).
Old-age provision revenue increased by 3 percent from EUR 39.2 million to EUR 40.4 million. The successful occupational pension provision business provided the main basis for this, even though the challenging situation in the overall market for private old-age provision was also felt by MLP. Health insurance revenue also rose by 3 percent from EUR 14.2 million to EUR 14.6 million.
At EUR 34.6 million, MLP was able to significantly increase EBIT in the first quarter, despite operating in challenging market conditions (Q1 2021: EUR 21.8 million). Alongside successful operational development, other contributing factors were the first-time consolidation of the Industrial Broker segment in a first quarter and a positive valuation-effect at MLP Banking AG. MLP had established the Industrial broker segment with the acquisition of RVM in early 2021, as well as further subsequent acquisitions. Net profit for the period rose from EUR 15.8 million to EUR 24.2 million.
As of March 31, 2022, the MLP Group served 564,200 family clients (December 31, 2021: 562,300). The gross number of newly acquired family clients was 4,000 (March 31, 2021: 4,600). The number of corporate and institutional clients as of March 31, 2022 was 24,800 (December 31, 2021: 24,800). The number of consultants in the MLP Group as of March 31, 2022 was 2,048 (December 31, 2021: 2,083). Despite the typical seasonal dip in the first quarter, MLP is anticipating positive development for the year in terms of the number of client consultants.
Despite increased risks in the markets, MLP is still anticipating EBIT in the range of EUR 75 to 85 million for the year 2022. The company continues to expect further growth in new business and an increase in recurring revenue in various consulting fields to largely compensate for the decline that is to be anticipated in terms of performance-based compensation in wealth management.
MLP reaffirms the medium-term planning that was communicated at the annual press conference on March 10, 2022. Based on the forecast for the current year, MLP is planning an increase in EBIT to a level of EUR 100 to 110 million by the end of 2025, as well as sales revenue of more than EUR 1.1 billion in the same year. This planning essentially rests on three core strategic success factors: a further increase in assets under management in the Group, sustainable growth across all consulting fields and continued expansion of our real estate business.
"The first quarter of 2022 shows that we are still able to continue along our successful path, even when operating in deteriorating framework conditions. We are right on track for the current year, yet we are also preparing ourselves to weather any potential setbacks in parts of our markets. The same applies to our reaffirmed planning for 2025, with which we will take the MLP Group to the next level in terms of both sales revenue and earnings“, comments Reinhard Loose, Chief Financial Officer at MLP SE.
|MLP Group (in EUR million)||Q1/2022||Q1/2021||Change in %|
|Real estate development||7.6||2.0||+>100|
|Earnings before interest and taxes (EBIT)||34.6||21.8||59|
|Earnings before taxes (EBT)||34.0||20.9||63|
|Earnings per share (diluted/basic) in EUR||0.23||0.15||53|
|Corporate, institutional clients||24,800||24,800*||0|
*) As at December 31, 2021