Wiesloch, November 9, 2023 – Despite significant external pressures associated with overall economic developments, uncertainty among consumers, as well as factors such as inflation, interest rate rises and global crises, MLP was able to maintain its successful course in the first nine months of the financial year. At EUR 684.6 million, the Group's total revenue rose to a new high (9M 2022: EUR 674.7 million). At EUR 209.7 million, Q3 revenue also surpassed the figure from the third quarter in the previous year (Q3 2022: EUR 202.1 million). Earnings before interest and tax (EBIT) for the first nine months were below the same period in the previous year. Amongst others this was due to the start of investments in the announced and successfully launched trainee programme for attracting MLP consultants, one-off effects and in particular inflation-based cost increases. Thanks primarily to the successful operational development, MLP is once again anticipating a strong closing quarter and confirms its EBIT forecast for the whole year of EUR 75 to 85 million.
The interest rate business displayed strong growth in the first nine months of 2023. MLP also recorded a significant increase in non-life insurance, old-age provision and health insurance. In loans and mortgages, MLP observed slight improvements of the overall situation in the third quarter. As anticipated and like real estate, however, revenue development after nine months was significantly weaker due to the challenging market environment. In contrast to the same period of the previous year, reporting date-based performance fees in wealth management only made a minimal contribution to earnings in the first nine months of 2023 due to developments on the capital markets. Despite operating in framework conditions that remain challenging in parts of the markets, EBIT after nine months reached EUR 45.2 million (9M 2022: EUR 52.2 million). Q3 EBIT was EUR 7.8 million (Q3 2022: EUR 8.2 million).
"The high stability of the overall business once again showed its positive effects. The MLP Group's broad and strategically interlinked positioning offers a clear USP over the competition. This on-schedule developed diversification is helping continously drive business forward – particularly also in tough economic times. We have not only taken another important step towards achieving our annual target, but also secured further strategic development," comments Dr. Uwe Schroeder-Wildberg, Chief Executive Officer at MLP SE.
In the period from January to September 2023, total revenue rose by 1.5 percent to a new record level of EUR 684.6 million (9M 2022: EUR 674.7 million). Income from commissions and fees was EUR 603.3 million (9M 2022: EUR 611.6 million). At EUR 45.7 million, interest income was substantially above the previous year's figure (EUR 12.6 million). At EUR 16.0 million in the first nine months of 2023, real estate development revenue displayed a significant decline over the strong equivalent period of the previous year (9M 2022: EUR 35.0 million). This was due to the market being under great pressure. Looking at the third quarter in isolation, total revenue rose to EUR 209.7 million (Q3 2022: EUR 202.1 million).
In the period from January to September 2023, the MLP Group recorded particularly strong revenue growth in non-life insurance of 14 percent to EUR 161.8 million. The Industrial Broker segment, DOMCURA and MLP's private client business all contributed to this. The portfolios managed in the MLP Group rose to a new record level of EUR 689.0 million (June 30, 2023: EUR 682.2 million). MLP also recorded a significant increase in revenue of 6 percent to EUR 144.4 million in old-age provision and of 8 percent to EUR 44.8 million in health insurance. The revenue growth in old-age provision can be attributed to increased demand for both private and occupational provision.
At EUR 55.9 billion, assets under management in the MLP Group remained roughly constant as of September 30, 2023 (June 30, 2023: EUR 56.7 billion; March 31, 2023: EUR 55.7 billion). Total wealth management revenue after nine months was EUR 228.5 million (9M 2022: EUR 240.1 million). This figure displayed quarter-to-quarter improvement. At EUR 78.1 million, Q3 was already at the previous year's level (Q3 2022: EUR 78.6 million). In light of volatility on the capital markets in the preceding quarters, only very limited performance fees have been collected so far this year.
As anticipated, the challenging market developments currently being encountered continued to burden both the real estate brokerage and loans and mortgages consultancy fields. Following a significant decline, real estate brokerage revenue was EUR 8.9 million after nine months (9M 2022: EUR 31.0 million) and revenue from loans and mortgages was EUR 10.3 million (9M 2022: EUR 16.1 million), despite signs of a slight improvement in the loans and mortgages business in the third quarter with revenue of EUR 3.3 million.
Although operating in conditions that remained challenging in parts of the markets, EBIT was EUR 45.2 million after the first nine months (9M 2022: EUR 52.2 million). The fact that EBIT is below the same period of the previous year can be attributed to the start of investments in the announced and successfully launched trainee programme for attracting MLP consultants, one-off effects and in general, particular inflation-based cost increases. MLP launched a trainee programme for aspiring MLP consultants in mid-July with the goal of further increasing the attractiveness of starting work as an MLP consultant. The programme has started successfully and its mid-term objective – while continuing to secure high quality consulting – is to achieve a substantial increase in consultant numbers.
EBIT in the third quarter of 2023 was EUR 7.8 million (Q3 2022: EUR 8.2 million). Net profit after the first nine months of 2023 was EUR 29.0 million (9M 2022: EUR 34.9 million).
As of September 30, 2023, the MLP Group served 578,200 family clients (September 30, 2022: 568,400). The gross number of newly acquired family clients was 14,100 (9M 2022: 13,700). The number of corporate and institutional clients as of September 30, 2023 was 27,100 (September 30, 2022: 25,100). The number of consultants in the MLP Group as of September 30, 2023 was 2,030.
Despite continuing to operate in challenging conditions in parts of the markets, MLP confirms its forecast for the current financial year and still expects EBIT in the range of EUR 75 to 85 million. Above all, MLP is anticipating the interest rate business to remain strong, as well as a strong fourth quarter in old-age provision consulting, where increased dynamics could already be observed in the last nine months. The same applies to the health insurance consulting field, in which MLP is now anticipating more positive revenue development for the year with a slight increase being forecasted. The investments of the last few years, in particular those targeting the IT infrastructure, and effective cost management will continue to deliver a strong positive impact in this regard.
MLP once again reaffirms its planning to record EBIT in the range of EUR 100 to 110 million by the end of 2025 with revenue of more than EUR 1.1 billion. This planning is essentially based on three key strategic success factors: a further increase in assets under management in the Group, ongoing development of non-life insurance portfolio volumes and sustainable growth in all parts of the MLP Group.
"Our growth in sales revenue in the first nine months of 2023 once again shows: The MLP Group not only has strong pillars that support and compensate for one another, but also continues to operate successfully in a high-quality and discerning customer segment. Although MLP was obviously not able to avoid price increases altogether, in particular those associated with rises in inflation, we have a handle on our costs. We are anticipating a strong fourth quarter, particularly with a view to our interest rate business and the ongoing dynamics in old-age provision, while at the same time making good progress with our mid-term planning for 2025," comments Reinhard Loose, Chief Financial Officer at MLP SE.
|MLP Group (in EUR million)||Q3/2023||Q3/2022||Change in %||9 months 2023||9 months 2022||Change in %|
|Revenue from commission and fees||186.1||184.0||+1||603.3||611.6||-1|
|Revenue from real estate development||1.0||8.6||-88||16.0||35.0||-54|
|Earnings before interest and taxes (EBIT)||7.8||8.2||-5||45.2||52.2||-13|
|Earnings before taxes (EBT)||8.3||7.5||+12||43.4||50.2||-14|
|Earnings per share (diluted/basic) in EUR||0.06||0.04||+50||0.30||0.32||-6|
|Corporate, institutional clients||27,100||25,100||+8|