According to leading economic research institutes, the moderate upswing in Germany’s economy will continue over the course of 2017. With ongoing favorable economic conditions overall, experts are forecasting economic growth to decline slightly year over year
In addition, the industry association BITKOM also expects to see positive trends. According to their assessment, the market for information technology is expected to grow by 2.7% during the forecast period.
As the cornerstone of the German economy, small and medium-sized enterprises and the upward trend in the labor market are expected to once again have a positive impact on the cooperative overall during the current fiscal year.
DATEV once again expects sales revenue to increase in the 2017 fiscal year, albeit at a slower growth rate than in the current reporting year. The company is forecasting that the operating result will remain stable and is striving to maintain the cooperative refund at the current level. Investments in the forecast period will decline sharply and will focus on expanding DATEV’s data center infrastructure as well as production equipment. As a result of the high volume of investments made in previous years, depreciation and amortization is expected to increase. The long-term building loans are being repaid in annual installments whose value remains constant, although the ability to make unscheduled repayments may be used, if appropriate. Thanks to their favorable interest rate structure, the interest on these loans will not have any significant impact on the company’s earnings position. The debt/ equity ratio will gradually improve.
The number of members will once again increase slightly.
Despite expanding data center capacity, power consumption should remain constant thanks to numerous Green IT activities the cooperative has implemented.
The number of employees is forecast to once again increase slightly in 2017.
Both the current and the following years will be shaped by the trend toward the digital transformation. The cooperative will stay abreast of these changes through the planned shift of its range of products and services to cooperative cloud solutions with a focus on the collaboration between members of the profession, private clients, and companies.
In this context, the company will continue to develop the DATEV Cloud applications for human resource management and taxes.
The fiscal authorities are also intensifying their use of digital communication. As a result of Germany’s Modernization of Taxation Methods Act, DATEV will need to implement numerous measures in its solutions during the forecast period and beyond.
Based on the new legal requirements governing the archiving of cash register data, the company plans to release DATEV Cash Register Archive Online, offering companies the ability to archive their cash register data in an audit-proof manner at the data center.
DATEV will continue to make advancements to its existing applications. Furthermore, a focus will be on adding new features, amendments to applicable law, and changes to the applications’ interfaces. The changes to the applications’ interfaces will be carried out using a standardized design language, known as DATEV’s Design DNA, which received the 2016 iF Design Award.
Similarly, the cooperative will continuously enhance its solutions for attorneys and auditors.
Due to the above-average demand for online solutions, cloud applications are expected to have a positive effect on growth.
The same applies to the IT Sourcing product group as a result of the high demand for secure printing and shipping services.
Together with its members, DATEV is focused on enhancing solutions that divide the work between members and clients. Within the scope of the DATEV 2025 strategy, seamless workflows between members of the profession, companies, and government agencies that do not require switching between different data formats play a major role.
In light of the favorable overall conditions, the Executive Board of DATEV expects the company to perform extremely well in 2017.