AWD Holding AG / Half Year Results
28.08.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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AWD strengthens its market position in Germany
German revenues up despite challenging market environment to 185.9 million
(+0.6%)
Austria and UK especially effected by finance and real-estate crisis
Swiss revenues increased to 35.1 million (+2.3%)
CEE remains growth market
Hanover, 28 August 2008 (AWD Holding AG). AWD, Europes leading independent
financial adviser, had in the first half 2008 a rather steady performance
despite the largest crisis of the financial markets since the Second World
War and even strengthens its market position in Germany further. Thereby
the company achieved revenues of 335.8 million in the first six months
2008. In comparison to the sector, a moderate decline of revenues compared
to H1 2007 (388.2 million).
In Germany, AWDs most important core market, revenues increased slightly
compared to H1 2007 and reached 185.9 million (184.8 million). Thereby
the German companies of the AWD Group again accounted for more than 50% of
the AWD Groups total. Thereby AWD recorded better new business numbers in
Germany than many of its competitors.
Revenues of AWD UK declined as a result of the continuing subprime and
real-estate crisis to 50.2 million (77.6 million). Due to the strongly
declining economic growth in Austria, revenues of the region Austria & CEE
declined to 64.6 million (91.5 million) in H1 2008. Thereby, the growth
segment Central and Eastern Europe continued its positive development.
A positive revenue development was also recorded by the Swiss operations of
the AWD Group, where revenues increased again to 35.1 million (34.3
million) despite a challenging market environment. In the first six months
2008, the share of revenue from up-front commission accounted for by
pension and investment products, the advisory focus of the AWD Group,
increased again in the first half of 2008 to 78.8%, which is 4.6 percentage
points higher than in the prior-year period. 'It is evident, that the need
for private pension planning will rise further. This offers excellent
growth opportunities in Europe. We are strengthening our market position in
order to utilize this potential,' stated Carsten Maschmeyer, founder and
CEO of the AWD Group.
Thereby the AWD Group achieved in the difficult second quarter, which was
shaped by the effects of the international financial crisis, from the
companies point of view a pleasing stable result. The challenges of the
competitive environment, as well as the increasing productivity
requirements, caused by the EU Mediation Directive, is leading to an
increased fluctuation in the total sector at present. 'With our
performance-orientated business model and variable compensation, we are
able to use our positive result in these difficult times to invest
anticyclic and win thereby good consultants of other companies,' said
Carsten Maschmeyer. 'The recruiting campaign which started mid-May is
progressing well and will result in the next months and years in a
substantial increase of the number of advisers.'
AWD also intends to adopt an active role with the markets consolidation
and the Groups market position in Germany, the most important core market.
The acquisition of a stake in the German financial adviser company,
Deutsche Proventus AG, in the second quarter 2008 was a step in this
direction. The AWD Group continues to push forward with its expansion in
the growth markets of Central and Eastern Europe. In addition, the business
model of holistic financial optimisation is also to be introduced in other
major markets of the future. AWD is therefore examining the possibility of
market entry in Russia. 'We intend to continue the success story of the AWD
Group,' stated Wilhelm Zsifkovits, CSO of the AWD Group. 'Thats why we are
focusing on expanding our sales team. This is the foundation of our
sustained corporate success.'
Whereas many national and international financial institutes had to write
off additional billions of Euros and pressure on earnings is forcing them
to save on personnel costs and reduce the range of services they offer, AWD
is making use of the currently challenging sector environment: In 2008, the
Group will invest a total of 30 million in an international recruiting
offensive with the goal of gaining new advisers and retaining good
consultants over the long term. This active, future-oriented positioning of
the AWD Group is temporarily reflected in the development of the Groups
EBIT, which amounted to 24.1 million in the first half of 2008 (H1 2007:
43.0 million). The EBIT-margin for the period was thus 7.2%. The reduction
in revenue and high fixed costs led to significant charges on earnings in
the first six months of this year, particularly in the regions Austria and
United Kingdom.
The AWD Groups most important value drivers also developed satisfyingly
despite the subprime crisis in the first half of 2008: AWD advisers
assisted 241,600 customers with the optimisation of their finances. The
number of core customers who were advised once again reached 152,200 and
89,400 new customers were acquired. Together with Deutsche Proventus AG,
which is not consolidated in the half year report 2008, the AWD Group had
about 6,600 financial advisers at 30 June 2008.
In a market environment which many experts still regard as rather
difficult, the AWD Group will continue to focus in the second half of the
current business year 2008 on the expansion of its adviser capacities as
well as the winning of additional consultants as well as on active measures
in a consolidating sector.
DGAP 28.08.2008
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Language: English
Issuer: AWD Holding AG
AWD-Platz 1
30659 Hannover
Deutschland
Phone: +49 (0)511 9020-5120
Fax: +49 (0)511 9020-5121
E-mail: investor.relations@awd.de
Internet: www.awd.de
ISIN: DE0005085906
WKN: 508590
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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DGAP-News: AWD Holding AG:AWD strengthens its market position in Germany
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