flatexDEGIRO AG
Original-Research: FinTech Group AG (von GBC AG): BUY

Original-Research: FinTech Group AG – von GBC AG

Einstufung von GBC AG zu FinTech Group AG

Unternehmen: FinTech Group AG
ISIN: DE000FTG1111

Anlass der Studie: Research Note
Empfehlung: BUY
Kursziel: 45.00 EUR
Letzte Ratingänderung: –
Analyst: Cosmin Filker; Marcel Goldmann

On 10/09/2018, FinTech Group achieved one of the most important milestones
in its recent history by announcing a long-term cooperation agreement with
Österreichische Post AG. During the past financial years, Österreichische
Post has offered banking services through Bawag P.S.K in its approximately
430 branches. Since this cooperation agreement expires in 2019,
Österreichische Post AG has chosen FinTech Group AG as its new cooperation
partner.

Under the terms of the new partnership, banking activities will be combined
in a new joint venture, with both partners holding 50% each. The new bank
will provide banking services in Austria following the granting of the
banking licence which, according to FinTech CEO Frank Niehage, is expected
to be achieved by the middle of the next financial year 2019.

Since the existing infrastructure of post.at can be used ‘at cost’ or, in
the case of marketing, even free of charge, the execution risk can be
classified as extremely low. In comparison, building your own comparable
infrastructure would involve immense costs. At the same time, today’s Bawag
customers will in future only have fewer than 100 contact points
(previously:> 1,700 points of contact), which should make it easier for
the
new joint venture to acquire customers. The fact that the management of the
joint venture has extensive experience in Austria due to its 9-year history
with flatex.at also shows a low implementation risk.

Over the next five years, the joint venture is to be capitalised at around
EUR 225 million. The financing of the FinTech share of EUR 112.5 million,
however, is already largely secured today. Less EUR 35 million from the 7%
capital increase, which was subscribed in full by Österreichische Post, and
the carrying amount of the contributed Austrian subsidiary, flatex.at, of
EUR 25 million, leaves a residual financing volume of EUR 52.5 million. In
the coming years, this should be covered predominantly by the revenues from
the IT service agreement.

In order to underline the newly agreed cooperation, Österreichische Post AG
has acquired a 7% share of FinTech Group AG. The Company will therefore
subscribe to 1.22 million new shares, excluding subscription rights, for a
total issue amount of approximately EUR 35 million.

With the publication of the semi-annual figures for 2018, FinTech Group AG
has confirmed the forecasts for 2018 that were published in the 2017 Annual
Report. Revenues of EUR 120 million, EBITDA of EUR 40 million and an after-
tax result of EUR 24 million are still expected. The half-year figures
achieved are in line with expectations, even though the Company needs to
achieve a higher turnover and earnings momentum in the second half of the
year. However, a look at the past financial years shows that a higher
proportion of sales and earnings tend to be incurred during the second half
of the year. We are thus keeping our sales and earnings forecasts for 2018
unchanged.

Since the effects of the current cooperation will only come into effect
after our specific forecast period, we have only taken the resulting
possible effects into account in the final value of the residual income of
our valuation model. In addition, we have taken into account the 7% capital
increase wholly subscribed by Österreichische Post AG, resulting in a
slight dilutive effect. Nevertheless, the potential of the new cooperation
outweighs this, which is shown by an increase in the fair company value to
EUR 45.00 (previously: EUR 41.70). Based on the current share price of EUR
27.45, we are maintaining our BUY rating.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/17005.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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Datum (Zeitpunkt)Fertigstellung: 28.09.18 (11:05 Uhr)
Datum (Zeitpunkt) erste Weitergabe: 28.09.18 (12:00 Uhr)

——————-übermittelt durch die EQS Group AG.——————-


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