2019 Half Year Results
CPP Group Plc sees revenue rise in first half of year as focus on growth markets fuels success
We are pleased to announce a 19% constant currency increase in revenue to £60.2 million in the first half of 2019.
The success, up from £51.3 million in the same period last year, is being driven by significant international revenue growth led by India. A broadening global partner base including Tata Capital, American Express and Chinese giant Bank of Communications (BoCom), supported by further investment in the Group’s InsurTech capabilities are also adding significant long-term value.
EBITDA grew by 44% on a constant currency basis to £2.3 million, while investments in business growth projects topped £1.3 million, resulting in an increased adjusted EBITDA of £3.6 million. Profit before tax reduced to £900,000, down from £1.3 million in the first half of 2018, reflecting the EBITDA growth offset by higher depreciation charges.
CPP’s upward growth trajectory, continuing the trend from previous periods, was also reflected in customer numbers which have increased by 800,000 in the first six months of 2019 to nine million.
Jason Walsh, Chief Executive Officer, commented:
“Ultimately, our success is built on our business partner relationships which we continue to deepen. Importantly we are also forming new partnerships with major global brands in our strategically important markets. These new and existing relationships will develop further over time and fuel the continued growth in our business. We are investing in our technology-led capability which will continue to strengthen our partnerships and enable more nimble and cost-effective proposition delivery as well as an exceptional customer experience.”
The Group’s key growth market was India, which saw a 44% constant currency increase in revenue to £40.9 million. This impressive performance is across a growing partner base and includes the delivery of a new life insurance and wellness product line, LivCare. Globiva, CPP’s business process management company in India, is also performing ahead of expectations, expanding to three locations (two in Delhi and one in Kolkata) with over 1,400 employees.
CPP’s strategic investment in innovative technology start-ups with the ability to scale and add value at pace is also seeing significant progress. Blink, a pioneering parametric InsurTech business, is transforming event-based insurance in the travel sector. Delivering campaigns in Turkey and Canada through large insurance brands, further global expansion is expected in the coming months. It also strengthens CPP’s ability to deliver end-to-end technology-led services for its existing business partners.
These contributed to revenue from Ongoing Operations increasing by 30% on a constant currency basis to £51.4 million, while revenue from CPP’s legacy business decreased to £8.8 million.
Jason Walsh added: “We are starting to see the rewards from the assembly of our capabilities, each of which plays its part in supporting the Group’s operations. Blink is our InsurTech business where already over 250,000 customers have had access to its parametric insurance platform and Globiva, the start-up business process management company, is growing rapidly and now has over 1,400 billable seats and boasts global brands like Ola, American Express and Tui amongst its third party clients.
“We continue to grow our international revenues, with the strong performance that we saw in 2018 being continued through the first half of 2019. Our Indian market has once again been the star performer significantly growing its revenue, profitability and customer numbers.”