QSC AG / Preliminary Results
26.02.2009
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's revenues and profitability up sharply in 2008
Preliminary numbers for 2008:
- Revenues rise by 23% to EUR413.3 million
- EBITDA advances by 93% to EUR67.3 million
- Net income of EUR0.8 million
Outlook for 2009:
- Free cash flow of more than EUR10 million
- Revenues and profitability to rise, in spite of the recession
Cologne, February 26, 2009. According to preliminary results, QSC AG
increased its revenues by 23 percent to EUR413.3 million in 2008, as
opposed
to EUR335.2 million in the year before, thus sustaining its fast pace of
growth in spite of the recession in Germany. This strong growth, the
ability to swiftly achieve synergies following the Broadnet merger and
sustained cost discipline throughout the organization enabled EBITDA to
nearly double to EUR67.3 million according to preliminary results, as
opposed
to EUR34.9 million the year before. The company also recorded a net income
of
EUR+0.8 million for 2008, as opposed to a net loss of EUR-12.7 million for
2007.
Growth in 2008 was fueled, in particular, by the positive development of
business in the Wholesale/Resellers segment, which benefited from more than
twice as many connected local DSL lines than at year-end 2007: Overall, QSC
connected 306,900 additional lines during the past fiscal year, increasing
their total to 555,700. However in the face of beginning saturation in the
residential customer DSL market and stronger competition, the growth of the
company's wholesale ADSL2+ business slowed down during the course of the
year. On the other hand, there was a rise in revenues from the resale of
voice and data services and in the Managed Services segment; together with
non-recurring revenues in wholesale business, this produced a 17-percent
rise in revenues in the fourth quarter of 2008 to EUR112.0 million, as
opposed to EUR95.6 million in the fourth quarter of the year before. Due to
high-margin non-recurring revenues and other factors, EBITDA increased to
EUR23.4 million in the fourth quarter of 2008, as opposed to EUR7.8 million
for
the corresponding quarter the year before; the company's net result
improved to a net income of EUR+4.3 million, as opposed to a net loss of
EUR-9.5 million in the fourth quarter of 2007. QSC Chief Executive Officer,
Dr. Bernd Schlobohm, explains: 'In a difficult market environment, we fully
achieved our own targets, which had already been increased twice during the
course of the fiscal year; that was a tremendous achievement on the part of
the entire QSC team.'
Significant decline in capital expenditures
Completion of the network expansion project by mid-year 2008 and a
subsequent reduction of capital expenditures led to a significant decline
in total capital expenditures for the past fiscal year: Overall, capital
expenditures totaled EUR91.4 million, as opposed to EUR122.9 million in
fiscal
2007. Moreover, in 2008, customer-related capital expenses accounted for 62
percent of this total, as opposed to 44 percent the year before. Typically,
QSC invoices some 90 percent of these customer-related capital expenditures
to the respective customers. As planned, upon completion of the network
expansion project, QSC also reduced the trade liabilities that had been
related to that expansion project; as of December 31, 2008, trade accounts
payable totaled EUR53.0 million, as opposed to EUR74.1 million the year
before.
With liquid assets of EUR49.1 million as of December 31, 2008, QSC sees
itself as being well financed for the growth it anticipates in 2009 and
beyond.
Positive development of business to be sustained in 2009
In spite of Germany's most serious post-war recession, QSC anticipates that
the positive development of its business will again be sustained during the
current fiscal year, with one of the company's focuses being on
strengthening its financial position and profitability. QSC is planning a
positive free cash flow of more than EUR10 million in fiscal 2009, along
with
an EBITDA of between EUR68 and EUR78 million. As a consequence, revenues
are
projected to reach between EUR420 and EUR440 million, and the company
expects
to earn a sustained net profit. In a difficult market environment, the
company will be focusing on further improving the revenue quality and will
thus be giving priority to higher profitability over higher revenues. Dr.
Schlobohm explains: 'Our products and solutions increase the productivity
of enterprises. This will play a major role in assuring that QSC continues
to remain on its growth course in 2009.'<pre>
Q4 2008 Q4 2007 2008 2007
Revenues 112.0 95.6 413.3 335.2
- Wholesale/Resellers 67.7 46.8 236.2 146.7
- Managed Services 18.8 16.9 73.3 65.1
- Products 25.5 31.9 103.8 123.4
EBITDA +23.4 +7.8 +67.3 +34.9
Net income +4.3 -9.5 +0.8 -12.7
Capital expenditures 22.0 59.0 91.4 122.9
Liquid assets* 49.1 79.4 49.1 79.4</pre>
* as of December 31
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 March 31, 2009, the annual report will be available at
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 26.02.2009
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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's revenues and profitability up sharply in 2008
| Source: EQS Group AG