11/12/2018
QSC increases revenues in first nine months of 2018 and raises revenue forecast
- Nine-month revenues up 4% to € 276.4 million
- Cloud revenues surge 31% to € 25.5 million
- EBITDA of € 27.3 million and free cash flow of € 6.7 million
- QSC raises revenue forecast to at least € 360 million and affirms forecasts for EBITDA and free cash flow
Cologne, 12 November 2018. The cloud and ICT provider QSC is maintaining its growth course in 2018. Revenues for the first nine months of the current financial year increased to € 276.4 million, up from € 264.8 million in the previous year’s period. For 2018, the Company now expects full-year revenues of at least € 360 million – rather than the previous forecast of “at least at the upper end of the € 345 million to € 355 million range” – and therefore expects to exceed the previous year’s figure (2017: € 357.9 million).
Ongoing dynamic growth in Cloud segment
QSC generated its highest growth rates once again in the current financial year in its Cloud segment, with its two core areas of activity, Cloud Services and Internet of Things (IoT). Revenues here surged by 31% to € 25.5 million in the first nine months of 2018. The TC business also performed positively, particularly benefiting in 2018 from higher demand for international voice termination services. TC revenues for the first nine months of 2018 grew by 11% to € 151.9 million. The two other segments, Consulting and Outsourcing, developed largely in line with expectations.
EBITDA amounted to € 27.3 million in the first nine months of 2018, compared with € 29.3 million in the previous year’s period. Operating earnings (EBIT) for the same period rose from € 6.5 million to € 7.0 million. Due to a significantly higher tax charge, consolidated net income came to € 1.6 million, as against € 2.6 million in the previous year’s period. The free cash flow totalled € 6.7 million at the end of the first nine months, compared with € 8.7 million in the previous year’s period. The Company’s financial and earnings strength has thus developed in line with expectations in the 2018 financial year to date. For 2018 as a whole, QSC therefore still expects to generate EBITDA of € 35 million to € 40 million and free cash flow of more than € 10 million – accompanied by revenues now expected to amount to at least € 360 million.
Comments QSC’s CEO, Jürgen Hermann: “QSC is steering a growth course in 2018. We are particularly benefiting from great dynamism in our Cloud business and stronger demand for TC services. We therefore now expect significantly higher revenues than originally budgeted at the beginning of the year”.
| € million | Q3 2018 | Q3 2017 | 9M 2018 | 9M 2017 |
|---|---|---|---|---|
| Revenues | 90.2 | 88.9 | 276.4 | 264.8 |
| Cloud revenues | 9.9 | 8.0 | 25.5 | 19.5 |
| Consulting revenues | 9.8 | 9.5 | 29.0 | 30.3 |
| Outsourcing revenues | 22.4 | 24.9 | 69.9 | 77.9 |
| Telecommunications revenues | 48.1 | 46.4 | 151.9 | 137.1 |
| EBITDA | 9.1 | 9.1 | 27.3 | 29.3 |
| EBIT | 2.3 | 2.2 | 7.0 | 6.5 |
| Consolidated net income | 0.3 | 1.5 | 1.6 | 2.6 |
| Free cash flow | 3.9 | 2.3 | 6.7 | 8.7 |
| Capital expenditure | 4.6 | 4.2 | 12.5 | 14.0 |
| Employees as of 30 September | 1,293 | 1,355 | - | - |
Notes:
The complete quarterly statement for the first nine months of the current financial year can be downloaded at www.qsc.de/en/investor-relations/. 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
