Sales Revenue

In 2016, DATEV generated revenues of 928.3 million euros (2015: 885.2 million euros) and, while prices remained stable, was once again able to exceed the excellent revenue figures of the previous year as well as continue the pleasing upward trend seen in recent years. The year-over-year revenue growth of 43.1 million euros, equal to 4.9%, was generated across all product groups.

Revenue Growth

For the fourth time in a row, the Accounting product group achieved the greatest revenue growth of all product groups in absolute terms, with an increase of 12.7 million euros (2015: 14.3 million euros). The majority of the product group’s revenue growth (8.5 million euros) was generated with members. Solutions for companies contributed nearly 4.2 million euros to the product group’s revenue growth.

Revenue

The Human Resources product group achieved revenue growth of 7.5 million euros (2015: 3.9 million euros). The number of employees processed using DATEV software has now increased to more than 12 million per month, which is once again an increase compared to the previous year.

The IT Organization product group continued to grow in 2016. Its revenue growth of 5.7 million euros (2015: 4.8 million euros) was once again primarily thanks to the document management system (DMS).

The IT Management product group remained on the road to success with an increase in sales revenue of 4.5 million euros (2015: 1.5 million euros). Out of all product groups, this product group achieved the highest relative revenue growth, which was thanks to the pleasing increase in the number of users of our DATEV-SmartIT, PARTNERasp, and DATEVasp solutions.

Expenses

In the 2016 fiscal year, operating expenses increased to 876.0 million euros (2015: 831.7 million euros). This corresponds to an increase of 44.3 million euros, or 5.3%. Among other factors, this increase resulted from expenditures for future topics that had an effect on all expense categories as a result of the additional use of human and material resources.

Expense Items in 2016

Cost of materials increased by 17.0 million euros to 69.2 million euros (2015: 52.2 million euros). The main reason for this was the reclassification of sales-related third-party services (external programming, speaking fees, and seminars) from other operating expenses to expenses for third-party services, which was carried out in the interest of clarity and transparency as a result of this figure growing steadily larger. Furthermore, higher sales-related shipping costs also led to a further increase.

Personnel expenses increased year over year by 24.0 million euros to 553.1 million euros (2015: 529.1 million euros). In addition to the number of total employees once again increasing, regularly scheduled salary increases and promised bonus payments played a key role in this rise.

Depreciation and amortization increased by 1.5 million euros to 51.3 million euros (2015: 49.8 million euros). This increase was primarily due to increased investment in data center technologies.

Other operating expenses increased by 1.9 million euros in the fiscal year, totaling 202.5 million euros (2015: 200.6 million euros). This increase was caused primarily by higher expenditures for hardware, software, and telecommunications due to an increased demand for data center services. Our increased activities at trade shows and conferences led to higher expenses for public relations. Furthermore, other personnel expenses increased due to a temporary increase in demand for additional capacities and the company celebrations on the occasion of DATEV’s 50th anniversary. The reclassification of sales-related third-party services from other operating expenses to expenses for third-party services had an offsetting effect.

Profit/Loss

At 54.3 million euros, operating profit for the reporting year stood 2.4 million euros lower than in the previous year (2015: 56.7 million euros).

A net total of 39.6 million euros was paid to members in the form of a cooperative refund (2015: 38.1 million euros).

The financial result improved by 1.5 million euros to −5.7 million euros (2015: −7.2 million euros). This was particularly due to the final assumption of losses on December 31, 2015, from the profit and loss transfer agreement with DATEV IT Dienstleistungs- und Service GmbH that was in effect until this time. The financial result in the fiscal year consisted primarily of interest payments on the financing of the DATEV IT Campus 111 as well as an extraordinary write-down on the investment book value of DATEV.pl Sp. z o.o. (Poland) totaling 1.5 million euros.

After-tax earnings totaled 5.1 million euros for the fiscal year, compared to 6.5 million euros in the previous year. After deducting miscellaneous taxes, the remaining profit for the fiscal year totaled 4.2 million euros (2015: 5.9 million euros).