QSC AG / Final Results
14.02.2008
Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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QSC announces preliminary results for 2007 and guidance for 2008
- Revenues up by 28% in 2007 to 335.2 million
- EBITDA grows by 65% in 2007 to 34.9 million
- Revenues between 385 and 405 million planned for 2008
- EBITDA between 50 and 60 million planned for 2008
Cologne, February 14, 2008. According to preliminary results, QSC grew its
revenues to 335.2 million during the past fiscal year, as opposed to
262.5 million the year before. In the fourth quarter, alone, revenues rose
by 15 percent from the previous quarter, reaching 95.6 million. This
quarter-to-quarter growth was mainly attributable to a strong increase in
wholesale business, where there was a notable improvement in the provision
of unbundled local loops.
In the full 2007 fiscal year, QSC posted its strongest revenue growth in
the Wholesale/Reseller segment, where revenues rose by 87 percent to
122.3 million. Revenues in the Large Account segment increased by 17
percent to 76.6 million, while revenues with Business Customers were up
by 12 percent to 84.7 million. Overall, QSC increased the revenue share
of its three strategic segments to 85 percent for the past fiscal year, as
opposed to 79 percent the year before.
According to preliminary results, network expenses rose by 26 percent to
227.2 million in 2007, as opposed to 180.4 million the year before. This
increase was mainly attributable to the operation of a significantly larger
network with some 1,700 central offices at year-end 2007. Furthermore,
network expenses also include one-offs for the integration of the network
of Broadnet AG, which was merged with QSC on October 31, 2007.
Nevertheless, QSC was able to improve its gross profit to 108.0 million
in 2007, as opposed to 82.1 million the year before.
During the past fiscal year, other operating expenses, primarily consisting
of marketing and selling as well as general and administration expenses,
rose by 20 percent to 73.1 million, as opposed to 60.9 million the year
before; the percentage of other operating expenses declined further from 23
percent to 22 percent of revenues.
Consequently, QSC again succeeded in disproportionately improving its
EBITDA in 2007; according to preliminary results, EBITDA rose by 65 percent
to 34.9 million, as opposed to 21.2 million in 2006. Depreciation
expense amounted to 45.5 million in 2007, as opposed to 28.4 million
the year before. Aside from the network expansion, this increase was
attributable to the growing customer base, as QSC amortizes
contract-related upfront expenses over a comparatively short period of 24
months. Furthermore, the fourth quarter of 2007 saw non-recurring,
synergy-related write-downs on those components of the Broadnet network
that overlap with QSCs and are therefore redundant. According to
preliminary results, EBIT stood at -10.6 million in 2007, as opposed to
-7.2 million the year before. The net loss amounted to -10.1 million, as
opposed to -5.3 million in 2006, as QSC, due to the business development
below expectations in 2007, had to abstain mostly from the planned
capitalization of tax loss carryforwards for the past fiscal year.
The network expansion, which is driven by Plusnet, the joint-venture with
TELE2, along with contract-related upfront expenses, led to a significant
increase in capital expenditures to 125.5 million in 2007, as opposed to
40.1 million in 2006. Although the physical network roll-out will only be
finished during the course of the current fiscal year, QSC had already
largely completed the investment phase in 2007 due to the necessary lead
times; the company now has access to the capacities that are required for
the strong growth that is anticipated in 2008. During the current fiscal
year, the company is planning on capital expenditures of between 60 and
80 million, with around 70 percent of this amount being attributable to
contract-related upfront capital expenses.
After gradually overcoming the capacity constraints in the provision of
unbundled local loops and accelerating order processing, the company plans
to resume its strong and profitable growth in the current fiscal year: QSC
anticipates revenues of 385 to 405 million and an EBITDA of between
50 and 60 million. Despite growing depreciation, the company aims for a
breakeven result after taxes. With net liquidity of 80.0 million as of
December 31, 2007, QSC is adequately financed for this planned growth.
The strongest revenue growth is planned in Wholesale business. QSC will
also develop new revenue opportunities with Large Accounts and Business
Customers by upgrading its Managed Services business.
The full annual report will be available on March 31, 2008, at
www.qsc.de/en/investor_relations/index.html.
Queries to:
QSC AG
Arne Thull
Investor Relations
Fon: +49(0)221-6698-724
Fax: +49(0)221-6698-009
E-mail: invest@qsc.de
Notes:
This corporate news contains forward-looking statements. These
forward-looking statements are based on current expectations and forecasts
of future events by the management of QSC AG. Due to risks or mistaken
assumptions, actual results may deviate substantially from those made in
such forward-looking statements. The assumptions that may involve material
deviations due to unforeseeable developments include, but are not limited
to, the demand for our products and services, the competitive situation,
the development, dissemination and technical performance of DSL technology
and its prices, the development and dissemination of alternative broadband
technologies and their respective prices, changes in respect of
telecommunications regulation, legislation and adjudication, prices and
timely availability of essential third-party services and products, the
timely development of additional marketable value-added services, the
ability to maintain and enlarge upon marketing and distribution agreements
and to conclude new marketing and distribution agreements, the ability to
obtain additional financing in the event that management's planning targets
are not attained, the punctual and full payment of outstanding debts by
sales partners and resellers of QSC AG, and the availability of sufficient
skilled personnel.
DGAP 14.02.2008
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Language: English
Issuer: QSC AG
Mathias-Brüggen-Straße 55
50829 Köln
Deutschland
Phone: +49 (0)221 66 98-112
Fax: +49 (0)221 66 98-009
E-mail: invest@qsc.de
Internet: www.qsc.de
ISIN: DE0005137004
WKN: 513700
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf
End of News DGAP News-Service
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DGAP-News: QSC announces preliminary results for 2007 and guidance for 2008
| Source: EQS Group AG