QSC AG / Quarter Results
13.05.2009
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 financial strength and profitability up significantly in first
quarter of 2009
- Revenues grow by 10 percent to EUR 107.6 million
- EBITDA advances by 71 percent to EUR 19.5 million
- EBITDA margin improves to 18 percent
- Net income stands at EUR 1.4 million
- Positive free cash flow of EUR 4.0 million
Cologne, May 13, 2009. During the first quarter of 2009, QSC strengthened
its revenues and profitability significantly, while simultaneously
increasing its financial strength. Concentrating on higher-margin products
and services, as well as building an extremely cost-efficient Next
Generation Network (NGN) early on, have now paid off in an environment that
is characterized by the world's most serious post-war recession.
Revenues rose by 10 percent in the first quarter of 2009 to EUR 107.6
million, as opposed to EUR 97.5 million for the same quarter the year
before.
The company achieved its strongest growth rates in the Wholesale/Reseller
segment, especially in Wholesale voice business, i.e. utilizing the NGN to
resell IP-based voice services to providers who do not possess a nationwide
infrastructure of their own.
QSC's focus on higher-margin products and services, along with strict cost
discipline throughout the entire organization, produced a further
significant improvement in EBITDA in the first quarter of 2009, which
increased by 71 percent to EUR 19.5 million, as opposed to EUR 11.4 million
for
the same quarter the year before. The EBITDA margin reached 18 percent in
the first quarter of 2009, as opposed to 12 percent for the first three
months of fiscal year 2008.
The company's operating profit (EBIT) stood at EUR 2.5 million in the first
quarter of 2009, as opposed to an operating loss of EUR -3.6 million for
the
comparable period the year before. All three of the company's segments
earned an operating profit. Net income amounted to EUR 1.4 million in the
first quarter of 2009; the year before, a net loss of EUR -4.1 million had
been incurred.
Net debt reduced
The positive development of operative business in the first quarter of 2009
improved QSC's financial strength: Cash flow from operating activities
increased to EUR 21.3 million, as opposed to EUR 15.8 million for the
corresponding period the year before. On the other hand, cash was used for
capital expenditures and financing. In this connection, QSC reduced its
interest-bearing liabilities - which include, in particular, liabilities to
banks as well as debt under finance lease contracts - by EUR 8.4 million.
As
a result of this significant decline, QSC earned a positive free cash flow
of EUR 4.0 million in the first quarter of 2009, enabling it to reduce net
debt by the same amount. Net indebtedness as of March 31, 2009, stood at
EUR
-8.2 million, as opposed to EUR -12.2 million at the close of the 2008
fiscal
year; QSC anticipates a further reduction in the coming quarters. Cash and
cash equivalents totaled EUR 44.7 million as of March 31, 2009.
Capital expenditures down sharply
In the first quarter of 2009, capital expenditures totaled EUR 11.5
million,
down 60 percent from the level of the corresponding quarter the year
before; at that time, the network expansion project as well as capital
expenses involved in connecting new customers had resulted in capital
expenditures totaling EUR 28.6 million. And in the coming quarters, too,
only
replacement investments for the nationwide infrastructure are scheduled,
along with capital expenses for customer connections.
Guidance reiterated
After getting off to a good start in fiscal year 2009, QSC will be making
every effort during the coming quarters to continue to increase its
financial strength and profitability in a very difficult market
environment. In this connection, the company is reiterating the guidance
for the full 2009 fiscal year that it announced on February 26, 2009: QSC
is thus planning on a free cash flow of more than EUR 10 million, as well
as
on an EBITDA of between EUR 68 and EUR 78 million. This will go hand in
hand
with planned annual revenues of between EUR 420 and EUR 440 million, as
well as
a sustained net profit.<pre>
In EUR million Q1 2009 Q1 2008
Revenues 107.6 97.5
- Wholesale/Reseller segment 64.3 51.7
- Products segment 24.8 27.9
- Managed Services segment 18.5 17.9
EBITDA 19.5 11.4
- Wholesale/Reseller segment 12.0 7.3
- Products segment 4.8 3.2
- Managed Services segment 2.7 1.0
EBIT 2.5 -3.6
Net income 1.4 -4.1
Free cash flow 4.0 -10.2
CAPEX 11.5 28.6
Workforce 683 678*</pre>
* As of December 31, 2008
Queries to:
QSC AG
Arne Thull
Investor Relations
Phone: +49 221 6698-724
Fax: +49 221 6698-009
E-mail: invest@qsc.de
Internet: www.qsc.de
Notes:
The quarterly report is 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 13.05.2009
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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 financial strength and profitability up significantly in first quarter of 2009
| Source: EQS Group AG