FRANKFURT, March 1 (Reuters) - German software group GFT Technologies gave an outlook for 2017 that it said was below market expectations due to investment banks being cautious with their spending.
“We see little investment in London and New York at the minute,” GFT Chief Financial Officer Jochen Ruetz told Reuters, adding that two of its major customers, Deutsche Bank and Barclays, were spending less on financial software.
GFT pointed to losses at Deutsche Bank and Britain’s exit from the European Union leading to uncertainty in the banking industry.
The company which makes over a third of its sales in Britain, had cut its 2016 profit target due to the impact of the fall in sterling after the Brexit vote.
GFT late on Wednesday said it expected earnings before interest, taxes, depreciation and amortisation (EBITDA) of 48.50 million euros ($51.22 million) and pretax profit of 35 million euros this year.
Analysts were expecting EBITDA of 54 million and 41.5 million euros according to ThomsonReuters data.
“We can’t repeat the growth of previous years,” Ruetz told Reuters.
Its shares dropped around 10 percent in late Frankfurt trading.
GFT reported EBITDA of 46.77 million and pretax profit of 33.05 million euros for 2016. ($1 = 0.9469 euros) (Reporting by Ilona Wissenbach; Writing by Victoria Bryan; Editing by Alison Williams)