24 January 2018
visit www.ebaday.com

Wincor Nixdorf gloomy on prospects for retail banking recovery

25 January 2010  |  5670 views  |  0 graph 2

German IT company Wincor Nixdorf says there are precious few signs of an imminent recovery in retail banking markets as it reports another quarter of depressed net sales and profits.

Net sales for the group, which supplies IT equipment for the branch operations of banks and retailers, fell in the first three months to €607 million (previous year: €646 million). Ebita was also lower at €49 million (€56 million). The Ebita margin fell accordingly to 8.1% (8.7%), while profit for the period declined six per cent to €33 million (€35 million).

Looking ahead at the rest of the fiscal year, Wincor Nixdorf president and CEO Eckard Heidloff points to the continued impact of the economic and financial crisis and the prospect of a further decline in the company's net sales and operating profit.

"In the short term at least we expect the worldwide environment to remain challenging. Developments in the market and in our business are still difficult to predict," he says.

Going further, he says it is not possible to identify any consistent trends in the IT solutions business for retail banks and retailers. Although capital expenditure on new systems to replace older IT infrastructure is being put back, he observes, most firms continue to spend on streamlining measures, rather than innovation and growth.

"We anticipate that the fundamental trends within our field of business will remain unchanged," says Heidloff. "However, at the moment it is not possible to predict when this will be translated into renewed growth."

Against this challenging backdrop, the company expects to report an equivalent decline in turnover for the full year to that experienced in 2009, with net sales falling by three per cent and a 31% slide in Ebita.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Wincor Nixdorf suffers during economic crisis

Wincor Nixdorf suffers during economic crisis

22 July 2009  |  5476 views  |  0 comments
Wincor Nixdorf wins three-year Kontanten ATM outsourcing deal

Wincor Nixdorf wins three-year Kontanten ATM outsourcing deal

26 November 2008  |  5099 views  |  0 comments
Wincor Nixdorf takes majority stake in Bankberatung

Wincor Nixdorf takes majority stake in Bankberatung

24 September 2008  |  4319 views  |  0 comments
Wincor Nixdorf takes majority stake in prosystems IT

Wincor Nixdorf takes majority stake in prosystems IT

22 April 2008  |  4126 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.vasco.comvisit www.capgemini.com

Top topics

Most viewed Most shared
Banks shift priorities toward growth, digitisation and innovation - surveyBanks shift priorities toward growth, digi...
9777 views comments | 38 tweets | 48 linkedin
Standard Chartered establishes fintech innovation and investment unitStandard Chartered establishes fintech inn...
9483 views comments | 14 tweets | 14 linkedin
Sbanken opens developer portal and invites customers to build their own digital bankSbanken opens developer portal and invites...
8516 views comments | 17 tweets | 11 linkedin
Metro Bank joins digital revolution with instant online account openingMetro Bank joins digital revolution with i...
7033 views comments | 13 tweets | 25 linkedin
Could distributed ledgers restore the reputation of the MBS market?Could distributed ledgers restore the repu...
7017 views comments | 6 tweets | 9 linkedin

Featured job

Competitive base + commission + benefits
UK or Germany

Find your next job