QSC AG / Quarter Results
05.11.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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QSC returns to profitability / Preliminary numbers for Q3 2008
- Revenues grow by 25 percent to 103.6 million
- EBITDA advances by 147 percent to 18.3 million
- After-tax net income of 2.1 million
- Increased guidance reiterated
Cologne, November 5, 2008. QSC AG returned to profitability in the third
quarter of 2008, earning a net income of 2.1 million according to
preliminary results, as opposed to a net loss of -4.7 million for the
same quarter the year before. In spite of the weaker economy, the company
is thus sustaining its strong and profitable growth in the third quarter of
the current fiscal year.
According to preliminary results, revenues rose by 25 percent to 103.6
million in the third quarter of 2008, as opposed to 83.2 million for the
corresponding quarter the year before. QSC recorded its strongest growth in
the Wholesale/Reseller segment, where revenues were up by 57 percent to
60.2 million. During the seasonably weaker third quarter, QSC connected
71,100 new DSL lines, increasing the total number of connected unbundled
local loops to 538,200. Year-on-year, QSC was again forced to sustain a
13-percent decline in revenues in the Products segment, which slipped to
25.1 million due to sustained substitution tendencies and pressure on
pricing in conventional voice telephony; however the company has already
succeeded in stabilizing the revenues relative to the preceding quarter
thanks to the continued migration of conventional voice telephony customers
to IP-based products. In the Managed Services segment, the growing demand
for IP-VPN solutions, as well as network-related services, fueled a
14-percent rise in revenues to 18.4 million.
18-percent EBITDA margin
The companys strong revenue growth, the swift implementation of synergies
following the Broadnet merger, as well as improved cost discipline
increased EBITDA by 147 percent to 18.3 million in the third quarter of
2008 according to preliminary results, as opposed to 7.4 million for the
same quarter the year before. The EBITDA margin stood at 18 percent in the
third quarter of 2008, rising by 4 percentage points within a single
quarter.
As a result of strong customer growth and the network expansion project,
depreciation expense rose to 15.7 million in the third quarter of 2008,
as opposed to 12.7 million for the corresponding quarter the year before.
Thanks to the very positive development of its operating business, QSC also
earned a preliminary after-tax net income of 2.1 million; a net loss of
-1.5 million had still be incurred in the second quarter of 2008.
Significant decline in capital expenditures
Following the conclusion of the network expansion project, capital
expenditures declined as planned to 21.1 million in the third quarter of
2008 according to preliminary results, as opposed to 34.5 million for the
same quarter the year before. During the past quarter, customer-related
capital expenses amounted to 68 percent of the total, with QSC swiftly
invoicing the largest part of these capital expenditures to the respective
customers. With liquidity totaling 49.4 million, QSC is well financed for
its anticipated growth.
Guidance expressly reiterated
Given these preliminary numbers, QSC is expressly reiterating its guidance
for the full 2008 fiscal year, which it had most recently raised on August
11, 2008: QSC anticipates revenues of more than 405 million and an EBITDA
of more than 60 million. Moreover, the company is also aiming for a
break-even result after-tax. Chief Executive Officer Dr. Bernd Schlobohm
explains: 'Our operating business continues to develop nicely. Our products
and solutions are enabling our business customers to be more efficient, and
thus more productive, and this is precisely what customers are focusing on
in the current environment.'
Queries to:
QSC AG
Arne Thull
Investor Relations
Fon: +49 221 6698-724
Fax: +49 221 6698-009
E-mail: invest@qsc.de
Internet: www.qsc.de
Notes:
From November 19, 2008, the 9-months report will be available under
www.qsc.de/en/investor-relations.html. 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 05.11.2008
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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 returns to profitability / Preliminary numbers for Q3 2008
| Source: EQS Group AG