11/06/2017
QSC grows in its Cloud business and raises its free cash flow forecast
- Cloud revenues up 63% in first nine months of 2017
- EBITDA margin improves to 11%
- EBIT rises 81% to € 6.5 million
- Consolidated net income increases to € 2.6 million
- Free cash flow forecast raised to between € 10 million and € 11 million
Cologne, 6 November 2017. Based on a business performance which was largely consistent with expectations, QSC further boosted its earnings and financial strength in the first nine months of 2017. While revenues decreased by € 29.1 million to € 264.8 million, the Company’s EBITDA of € 29.3 million virtually matched the previous year’s figure. The EBITDA margin improved by 1 percentage point to 11%. EBIT rose by 81% to € 6.5 million, while consolidated net income increased to € 2.6 million, as against € -0.1 million in the previous year. QSC thus generated positive consolidated net income for the third consecutive quarter. The increased earnings strength was driven in particular by the Company’s improved cost base, as well as by a lower volume of depreciation and amortisation. QSC’s lean cost structures were also one of the main factors driving the 12% improvement in free cash flow to € 8.7 million in the first nine months of 2017.
Particularly dynamic developments were seen in Cloud – the Company’s newest segment – in the first nine months of 2017. Revenues here, which are generated above all with the Pure Enterprise Cloud and the Internet of Things (IoT) portfolio, surged year-on-year by 63% to € 19.5 million. QSC’s revenues in its Consulting segment and its TC business with corporate customers were at the same level as in the previous year. Due to market and regulatory factors, however, TC revenues with resellers fell by € 22.9 million to € 68.4 million. Revenues in the Outsourcing segment decreased by € 13.4 million to € 77.9 million.
To account for the positive development in its free cash flow, QSC has raised its full-year forecast for 2017. Accordingly, the Company now expects to generate free cash flow of between € 10 million and € 11 million. It previously only expected to slightly exceed the previous year’s figure of € 8.4 million. QSC still plans to generate revenues of € 355 million to € 365 million and EBITDA of between € 36 million and € 40 million. Comments QSC’s CEO, Jürgen Hermann: “We are consistently implementing our plans for 2017 – gradually expanding our Cloud business, boosting our TC business with corporate customers and raising our profitability.”
| € million | Q3 2017 | Q3 2016 | 9M 2017 | 9M 2016 |
|---|---|---|---|---|
| Revenues | 88.9 | 95.9 | 264.8 | 293.9 |
| Cloud revenues | 8.0 | 5.6 | 19.5 | 12.0 |
| Consulting revenues | 9.5 | 10.3 | 30.3 | 30.7 |
| Outsourcing revenues | 24.9 | 27.6 | 77.9 | 91.3 |
| Telecommunications revenues | 46.4 | 52.4 | 137.1 | 159.9 |
| - of which with resellers | 23.3 | 29.5 | 68.4 | 91.3 |
| - of which with corporate customers | 23.1 | 22.9 | 68.7 | 68.6 |
| EBITDA | 9.1 | 9.3 | 29.3 | 29.8 |
| EBIT | 2.2 | 1.0 | 6.5 | 3.6 |
| Consolidated net income | 1.5 | -0.1 | 2.6 | -0.1 |
| Free cash flow | 2.3 | 2.3 | 8.7 | 7.8 |
| Capital expenditure | 4.2 | 7.2 | 14.0 | 14.1 |
| Number of employees at 30 September | 1,355 | 1,371 | - | - |
Notes:
The complete quarterly statement can be downloaded at www.qsc.de/en/qsc-ag/investor-relations.html. This Corporate News contains forward-looking statements that are based on current expectations and forecasts on the part of the management of QSC AG with regard to future events. Due to risks or erroneous assumptions, actual results may deviate materially from these forward-looking statements.
Contact for enquiries:
QSC AG
Arne Thull
Head of Investor Relations
T +49 221 669-8724
F +49 221 669-8009
invest@qsc.de
www.qsc.de
