05 March 2018

Avaloq announces record 2017 results, driven by 12 customers going live

- Adjusted EBITDA grew to over CHF 100 million. Group revenues up to over CHF 550 million. Cash on hand up to over CHF 180 million

- Strong shift of demand towards Avaloq’s Software as a Service (SaaS) and Business Process as a Service (BPaaS) solutions from banks and wealth managers in Asia Pacific, Switzerland, and EMEA

- New customers in 2017 included Bank of Asia, Kasikornbank and Deutsche Apotheker- und Ärztebank, among others

- 12 customers went live using Avaloq solutions in 2017 including RBC Asia, Edmond de Rothschild and Notenstein La Roche Privatbank. In addition, at the start of 2018, the first wave of 22 of the 255 Raiffeisen banks in Switzerland went live

- More than 1,300 third-party developers have signed up to Avaloq’s co-innovation portal. Over 90 fintech solutions now form part of the unique Avaloq Software Exchange platform boosting the Avaloq ecosystem

 

Avaloq, an international fintech and leader in integrated banking solutions, has reported strong earnings for 2017 driven by sustained demand for the firm’s banking and wealth management solutions. Its unparalleled focus on Software as a Service (SaaS) and Business Process as a Service (BPaaS) continues to win new customers and deliver significant value for established customers as the digital transformation of the financial services sector, the need for flexible business models and increased automation drive the future of the market.

 

Avaloq generated full-year revenues of over CHF 550 million in 2017. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased to over CHF 100 million. Cash on hand grew to over CHF 180 million.

 

2017 saw a significant volume of customer projects: 12 customers went live using Avaloq solutions including RBC Asia, Edmond de Rothschild and Notenstein La Roche Privatbank, for instance, while new customers included Bank of Asia, Kasikornbank and Deutsche Apotheker- und Ärztebank, among others. In addition, Avaloq saw a significant number of additional special projects for customers which helped drive record revenues. Sales, as measured by total contract value yielded significant growth providing more than 80% revenue under contract for 2018 as well as high revenue visibility underpinned by a strong opportunity pipeline and increased customer activity including 22 of the 255 Raiffeisen banks in Switzerland going live at the start of the new year.

 

More than 1,300 third-party developers have signed up to Avaloq’s co-innovation portal, while over 90 fintech solutions are now part of the unique Avaloq Software Exchange platform. Launched in September 2015, the Exchange is an online marketplace open to current and future Avaloq partners including fintech firms, and financial institutions. It offers access to the entire Avaloq Community, consisting of 158 banks worldwide which manage assets worth around $4 trillion using Avaloq solutions.

 

Avaloq also welcomed global private equity firm Warburg Pincus as a significant shareholder in June 2017. In line with its plan to accelerate growth organically and through acquisitions, Avaloq has recently implemented a new governance structure and team to strengthen its operational and strategic management.

 

Francisco Fernandez appointed Juerg Hunziker as the new Group CEO to lead the execution of Avaloq’s growth strategy, harnessing the power and the capabilities of the firm’s 2,000+ staff worldwide. Francisco Fernandez, as Group Chairman, thought leader and innovator focuses on the long-term strategy for Avaloq, on innovations, and on driving acquisitions.

 

Juerg Hunziker, Avaloq’s Group CEO said: “2017 was a record-breaking year for Avaloq and demonstrated the strength of our business model and our customers’ focus on automation and digital excellence. The triple requirement for banks to undertake digitization projects while remaining compliant and maintaining a competitive edge continues to drive demand for our services. We have the strength and depth to build the business further in 2018 and the years ahead.”

 

Francisco Fernandez, Avaloq’s Founder and Group Chairman, said: “2017 was a remarkable year for Avaloq not just in terms of our financials but in terms of customer engagement, new business growth across all our markets, the continued development of our innovative SaaS and BPaaS solutions and the success of the Avaloq Software Exchange, to name a few. We believe the strength of the Avaloq proposition is truly compelling as financial institutions look to capitalize on the tech-driven changes impacting - and transforming - the sector. Our ethos remains simple: our success is driven by the success of our customers and this will continue to fuel our ambitions as we look ahead to another exciting year.”

 

Avaloq reports its results on an IFRS basis consistently from year to year inclusive of all necessary charges, provisions, and accruals reflecting the operations of the business.

Press contact

You’re a journalist looking for more information about Avaloq or its latest news?  We would be delighted to hear from you.
Please contact:


Andreas Petrosino
Corporate Communications Manager

+41 58 316 10 10
press@avaloq.com