The year 2016 has been a turning point for Dion. Our focus on further strengthening ourrelationship with our customers has been a rewarding experience and the journey continuesin 2017 and beyond.
The financial services industry across the globe continues to undergo significantchanges with technology driving substantial innovations; new regulatory demands adding tobusiness pressures; tech savvy customers demanding better instant and more transparentservices; and rising competition from new entrants and disruptors. During these taskingtimes we increased our focus on enabling our customers address most of their challengesthrough enhancements in our existing software products as well as innovating new solutionsto address growing demands from customers as well as regulatory bodies.
Enhancing our existing products and building innovative solutions
During the year our key traditional solutions continued to generate admirable returnsat the same time as investment continued into new products which will drive growth intothe future. Our post-trade clearing and settlement solution NOVA and iBROKER; and wealthmanagement suite accounted for nearly half of the revenue. We successfully launched newmodules in our wealth management suite that allow firms to comply with upcoming regulatoryrequirements like MiFID II. The new data analytics module
allows wealth management firms to build better investment models quicker helping theircustomers make a more informed decisions thereby gaining a competitive advantage. Thereis a definite positive reaction in the market for the new modules as firms show increasinginterest in these solutions.
We also see an increased demand for some of our more recently launched products likeTradeCentre & Tax and Regulatory Compliance solution (TRAC) which addresses FATCA andCRS compliance.
We have made significant progress with our TradeCentre solution and have received apositive response from the Australian market as stockbrokers and financial advisors seekan alternative solution to their legacy front office infrastructure to help grow theirbusiness. Within the TradeCentre solution suite we recently launched a capability thatallows wealth advisors to use their existing systems to also invest in exchange tradedfunds; and allow stockbrokers to provide wealth management advisory services to theircustomers base. This allows firms to extend their stockbroking business into the wealthadvisory space with minimal additional investment.
We also launched a new real-time payment solution in Europe that allows banks tomodernise their payment systems facilitating complete automation of the processes fromorder acceptance to payment realisation in real time.
With the introduction of PSD2 reforms and increasing demand from various regulatorybodies across Europe for increased transparency banks are under tremendous pressure toautomate their payments and commission processes. This gives us a good opportunity to workwith our customers to address these new payment related requirements.
Increasing our business efficiency
The new management at Dion is working relentlessly to further improve the operationalefficiency of the business and have achieved significant success in the last one year. Werestructured our business in FY17 to create synergies across the business and provide moreintegrated product solutions to our customers globally.
Dion has reported improvement in operating margin in the financial year 2016-17 and weaim to sustain improvement in margins and demonstrate growth in revenue by leveraginglongstanding relationships with our customers and continued efforts towards improvingbusiness efficiency. In financial year 2016-17 we've reported a positive EBITDA of ?20.88 crore with a total operating revenue of f 242.95 crore an increase of approx. 5.5%
YoY. Our operating cost is reduced by 14.29% YoY to ? 222.07 crore.
With our new management structure focus on customer success and leading solutions andservices with unique strengths we are well positioned to pursue opportunities in theregions we operate in.
Our continued investment in software development to enhance and integrate our productsfor our customers will help deliver future revenue growth and build long-termrelationships.
The dedication and hard work of our employees in all regions supported our growth andachievements. We like thank our customers for supporting all of the changes we haveimplemented this year and the future road map of our products. The fact that our loyalcustomer base increased is encouraging and it demonstrates their confidence in ourtechnology and the growth that lies ahead. We are determined to continue our focus on theindustry's requirements and bring innovative solutions to our customers enabling theirbusinesses to grow stronger and more profitable
We believe that the changes we made will ensure that our shareholders will be rewardedfor the long term and we thank them for their support and confidence in our strategy.
Chief Executive Officer
Dion Global Solutions is a trusted global financial technology company with expertisein building software solutions for wealth management & asset administration; retail& institutional trading and settlements; FATCA CRS & other tax compliances; realtime payments; bank connectivity & case management; data lifecycle managementplatform; and GRC audit. With presence in over 16 cities across 11 countries for over twodecades company has built in-depth business and technology expertise to serve thespecific and localised needs of financial services firms across the globe. Dion has over500 clients in more than 85 countries supported by a worldwide staff of nearly 500including more than 250 in product development.for more information visit:www.dionglobal.com