Crealogix reports jump in second-half sales but suffers annual loss amid restructuring costs

By John Reynolds on Tuesday 15 September 2020

Digital Banking

The Swiss fintech reported sales up 1.7 per cent to 107.7m Swiss Francs (£92.8m) in the year ending June 2020. However, losses were 4.9m Swiss Francs (£4.19m) for the year following a restructure of the business.

Crealogix reports jump in second-half sales but suffers annual loss amid restructuring costs
Image source: Oliver Weber/Crealogix.

Swiss fintech Crealogix has reported a nudge up in sales of 1.7 per cent to 103.7m Swiss Francs (£88.68m) in the year ending June 2020, but reported a loss of 5.4m Swiss Francs (£4.62m) after it was hit by restructuring costs.

Crealogix said that sales were up 13.2 per cent in the second half of the year, despite the impact of Covid-19.

One highlight in the full-year results was that software-as-a-service and Hosting revenues were up by 15 per cent.

The fintech was, however, hit by a one-off 7m Swiss Francs restructure cost, which hit its bottom line but Crealogix said that the restructure and changes to its product portfolio would bear fruit in the long-term.

Overall, Crealogix reported a loss of 5.4m Swiss Francs (£4.62m), which includes a goodwill amortisation financial hit of 4.9m Swiss Francs (£4.19m).

Earlier this year, the group announced plans of its restructure, in a move that cut around 10 per cent of its workforce.

With around 700 employees globally, the cut saw around 70 roles go.

Executive Vice President Volker Weimer also stepped down while in December last year, Oliver Weber replaced Thomas Avedik as group CEO.

Welmer had led Crealogix's operations in Germany since 2015.

Looking ahead, Crealogix said: “The full effects of the Covid-19 pandemic on our economy as a whole and our partners’ investment appetite remain difficult to predict.”

“We see positive outcomes in a willingness and need for speed in further digitising processes and offerings, and we expect a heightened demand for digital banking in the near term.”

Crealogix is shifting its business model towards being a software-as-a-service provider.

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