Avaloq continued to grow in 2016
Avaloq Group, a leading international fintech company and leading provider of integrated and comprehensive banking solutions, reports organic growth, higher margins and strong liquidity generation for the 2016 financial year. Six new customers joined the Avaloq community and 28 going-live projects were successfully completed.
Swiss fintech company Avaloq's full-year revenue for 2016 was CHF533 million, up CHF10% from CHF485 million reported for the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by CHF41% to CHF82 million compared to CHF58 million in 2015, which was characterized by high upfront investments in new digital banking technologies, software as a service (SaaS) solutions and integrated business process outsourcing (BPO) offerings. EBITDA margin improved by 3.4 points year-on-year to 15.4%. The company reported strong cash flows with net cash from operating activities increasing by 100% to CHF 62 million and cash on hand increasing by 8% year-on-year to CHF 63 million. Net debt at year-end was 1.5x EBITDA.
"In 2016, we once again proved the attractiveness of our business model," commented Avaloq CEO Francisco Fernandez. "We saw strong revenue growth and increased profitability while continuing to invest in our offerings. Our transformation from a pure software company to a provider of integrated services is virtually complete and we are confident that our investments will pay off in 2017 and beyond. We intend to continue on the path to capital market readiness, which will also be reflected in greater financial transparency."
Avaloq continued to expand its business in 2016, investing in growth and acquiring six new customers, including Axion Swiss Bank, Arab Bank and Notenstein La Roche Privatbank. Liechtensteinische Landesbank, LGT Group and another large bank have decided to deploy Avaloq Banking Suite in additional international business areas. In addition, Deutsche Apotheker- und Ärztebank (apoBank) and Avaloq signed a contract for a project to evaluate future cooperation. Implementation project activities remained at a high level: 28 projects were completed in 2016 with a successful going live. These include the successful migration of HSBC Private Bank, Crestone and Maybank Private Wealth to the Avaloq Banking Suite, as well as the implementation of new digital solutions for several existing clients, according to the company.
Avaloq's customers include financial institutions and asset managers from around the world, who together manage assets of over CHF 4,000 billion with Avaloq solutions. Thanks to its growth, Avaloq has been able to create additional jobs and now employs people from 66 nations.
