JDC Group - Banking on a strong Q4

JDC Group (JDC) issued its Q323 report in which its FY23 guidance was adjusted to the lower end of the indicated revenue and EBITDA ranges. This was partly due to the weak economic environment in Germany and partly because JDC may not be able to consolidate Top Ten Group in FY23. Nevertheless, to reach the lower end of the €175–190m revenue guidance, a strong Q4 is needed given the 9M23 realised revenue of €122.9m. However, we believe guidance is realistic given seasonal trends as Q4 is the quarter when clients usually evaluate their insurance portfolios.