STUTTGART (dpa-AFX) - The digitization drive of banks and insurance companies is providing IT services provider GFT Technologies with further growth. Although the economic environment has become more difficult, the software group announced in Stuttgart on Thursday, there are some positive signs. The group therefore expects demand to continue to pick up in the second half of the year. Analysts and investors were disappointed, however.

In the morning, the share price of the SDax group slipped by around ten percent to 31.43 euros. The share was thus worth as little as it was last October. With the latest price losses, the share moved further away from the record high of € 49 reached last summer. The GFT share had risen by almost 800 percent after the slump in the crash at the beginning of the Corona pandemic in the spring of 2020 until the summer of last year - since then the air has been out.

One analyst saw its expectations as slightly missed, and one trader pointed out that some investors might have hoped for an upgrade in the outlook. The analyst firm Pareto said that the operating figures had not met its own optimistic forecasts. Strong business with Deutsche Bank did not hide the fact that growth in other customer groups was meager.

One Borsian rated the news as insufficient overall. The stock is also a stock characterized by only thin trading, he pointed out. This makes it even more vulnerable to sharp price fluctuations.

According to the statement, earnings rose by a tenth in the first quarter to just under 191 million euros. Adjusted operating earnings before interest and taxes (Ebit) climbed 17 percent to 16.3 million euros. Below the line, GFT Technologies increased its profit by a tenth to € 10.5 million.

Banks and insurance companies in particular are currently showing strong demand for digitization solutions, it said. Looking at the individual divisions, the company was able to increase profits in the banking sector by 10 percent within one year, in the insurance business it was 4 percent, and in the industrial sector almost a quarter. In the world's largest software market, the USA, in particular, business developed "very dynamically".

The Group confirmed its forecast for the current year. Management continues to expect sales to increase by 16 percent to around 850 million euros. For adjusted operating profit, the Group forecasts growth of 19 percent to around 80 million euros. The annual targets also include the pro rata acquisition of Targens GmbH, which GFT bought from Landesbank Baden-Württemberg (LBBW) on 1 April.

As of 31 March, GFT employed a total of 8792 full-time staff. This corresponds to an increase of 8 percent. The Stuttgart-based company develops solutions based on new technologies such as artificial intelligence (AI) and blockchain./knd/lew/zb