DGAP-News: QSC AG / Key word(s): Quarter Results
QSC sustains profitable growth in third quarter of 2011
07.11.2011 / 07:30
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QSC sustains profitable growth in third quarter of 2011
- Revenues up 21 percent to EUR 128.3 million
- EBIT improves by 23 percent to EUR 8.0 million
- Growth stems from consolidation of two new subsidiaries as well as
positive new customer development
- QSC now anticipates free cash flow of EUR 40 to EUR 45 million for full
2011 fiscal year
Cologne, November 7, 2011. Cologne-based QSC AG sustained its profitable
growth in the third quarter of 2011; revenues advanced to EUR 128.3
million, compared to EUR 105.6 million for the same quarter one year
earlier. A major share of this development was attributable to the
consolidation of the company's two new subsidiaries, IT Outsourcing and IT
Consulting provider INFO AG as well as Housing and Hosting specialist IP
Partner. Moreover, the QSC Group succeeded in winning new small and
mid-size customers, especially in ICT solutions business. These successes
enabled the company to significantly increase the share of IP-based
revenues in the third quarter to 80 percent, compared to 69 percent for the
same quarter the year before; the company generated only 20 percent of its
revenues in the conventional lines of business of a TC provider, such as
Call by Call and reselling DSL lines.
Profitability up sharply
The strong rise in IP-based revenues and new multi-year contracts
necessitated the recruitment of additional IT specialists in the third
quarter of 2011. The workforce at INFO AG, alone, rose by 26 people to 638;
further recruitment is planned for the coming quarters. Nevertheless, QSC
was able to grow its EBITDA moderately to EUR 20.8 million, in contrast to
EUR 20.3 million for the same quarter last year. During the past quarter,
EBIT rose from EUR 6.5 million to EUR 8.0 million, while consolidated net
income increased to EUR 6.4 million, in contrast to EUR 5.8 million in the
third quarter of 2010.
A comparison of the nine-month numbers also demonstrates the strong
profitability of the QSC Group. While revenues have thus far risen by 12
percent to EUR 355.2 million in the current fiscal year, EBIT has improved
by 44 percent to EUR 22.5 million. Consolidated net income rose by 27
percent to EUR 16.8 million, representing earnings per share of EUR 0.12.
The public tender offer for INFO AG shares ended during the past quarter;
overall, QSC now holds 91.90 percent of INFO shares. QSC financed both this
acquisition as well as the acquisition of IP Partner, along with necessary
capital expenses, predominantly from its own resources. QSC's financial
strength can be seen, in particular, in its sustained positive free cash
flow, which stood at EUR 6.1 million in the third quarter of 2011.
QSC now anticipates free cash flow of EUR 40 to EUR 45 million
In view of the positive development during the first nine months of the
fiscal year, QSC is raising the lower limit of its free cash flow forecast
for the current fiscal year: The company now anticipates a free cash flow
of between EUR 40 and EUR 45 million, instead of the previous forecast of
between EUR 35 and EUR 45 million. QSC continues to plan to distribute its
first dividend for the current fiscal year.
QSC Chief Executive Officer, Dr. Bernd Schlobohm, notes: 'The acquisitions
of INFO AG and IP Partner are beginning to pay off. This can be seen not
only in our good quarterly numbers, but also in our successes in the
market. We are winning more and more orders by working together, enabling
us to noticeably grow our new order volume. We will be driving this
collaboration in the coming quarters, so that we can convince more and more
small and mid-size enterprises of the advantages of one-stop shopping for
comprehensive ICT services.'
|[![CDATA[|[pre|]]]|]
In EUR millions Q3 2011 Q3 2010 Q1-Q3 2011 Q1-Q3 2010
Revenues 128.3 105.6 355.2 316.4
EBITDA 20.8 20.3 60.6 59.6
EBIT 8.0 6.5 22.5 15.6
Consolidated net income 6.4 5.8 16.8 13.2
Free cash flow 6.1 8.5 35.0 20.6
CAPEX 6.8 8.2 25.9 21.9
Workforce 1,285 619
|[![CDATA[|[/pre|]]]|]
Queries to:
QSC AG
Arne Thull
Head of Investor Relations
Phone: +49 221 6698-724
Fax: +49 221 6698-009
E-mail: invest@qsc.de
Internet: www.qsc.de
Notes:
The 9-month report is available for download at
www.qsc.de/en/qsc-ag/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.
End of Corporate News
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Language: English
Company: QSC AG
Mathias-Brüggen-StraÃe 55
50829 Köln
Germany
Phone: +49-221-6698-724
Fax: +49-221-6698-009
E-mail: invest@qsc.de
Internet: www.qsc.de
ISIN: DE0005137004
WKN: 513700
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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144880 07.11.2011
DGAP-News: QSC sustains profitable growth in third quarter of 2011
| Source: EQS Group AG