GFT technology group sees profits slump in the first half of the year. (picture alliance / dpa)
The German technology group GFT, which specializes in software for the financial sector, recorded a decline in profits in the first half of the year. Net income fell by 54 percent year-on-year to 2.8 million euros, the company announced in Stuttgart on Thursday. The reasons given by the group included major investments in the expansion of its sales division and the development of new technical solutions.
Sales, on the other hand, rose by 5 percent to 221.1 million euros - even though the share of total sales accounted for by the company's two major customers, Deutsche Bank and Barclays, fell from 32 to 22 percent. Due to further declining business with these top customers, the technology service provider has been trying for years to reduce its reliance on the two banks and is expanding its activities in the insurance and industrial sectors.
For the year as a whole, GFT expects revenues to increase from 429 to 440 million euros and earnings before taxes to amount to 13 million euros (previous year: 18.7 million euros). The technology group employs just over 5,500 people.
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