Earnings Release • May 10, 2010
Earnings Release
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Corporate | 10 May 2010 07:50
QSC improves profitability and free cash flow in first quarter of 2010
QSC AG / Quarter Results
10.05.2010 07:50
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
QSC improves profitability and free cash flow in first quarter of 2010
Cologne, May 10, 2010. QSC AG's focus on strengthening its financial
position and profitability paid off again in the first quarter of 2010.
EBITDA rose from EUR 19.5 million to EUR 19.6 million and net income from
EUR 1.4 million to EUR 3.2 million on revenues of EUR 105.9 million, as
opposed to EUR 107.6 million in the extremely strong first quarter of 2009.
This development was based upon QSC's intentional focus on high-margin
IP-based revenues and the resulting transformation from a network operator
to a services provider for small and mid-size customers. As a result,
revenues in the first quarter of 2010 declined in the classical lines of
business of a network operator, such as call-by-call and the provision of
ADSL2+ lines, while revenues with IP-based products and services were up.
EBIT margin doubles to 4 percent
QSC's focus on higher-margin revenues, as well as strict cost management,
increased EBITDA to EUR 19.6 million in the first quarter of 2010, while
the EBITDA margin improved to 19 percent from 18 percent the year before.
During this period, QSC was able to grow its operating profit, its EBIT, to
EUR 3.9 million, as opposed to EUR 2.5 million the year before. The EBIT
margin doubled to 4 percent from 2 percent for the same quarter one year
earlier. Net income increased to EUR 3.2 million in the first quarter of
2010, as opposed to EUR 1.4 million for the same quarter the year before.
Net liquidity rises to EUR 5.3 million
In the first quarter of 2010, QSC earned a positive free cash flow of EUR
4.6 million. In this connection, liquid assets decreased by EUR 0.3 million
to EUR 41.0 million as of March 31, 2010, as opposed to EUR 41.3 million on
December 31, 2009. During the same period, QSC further reduced its
interest-bearing liabilities by EUR 4.8 million to EUR 35.7 million. This
increased net liquidity to EUR 5.3 million as of March 31, 2010, as opposed
to EUR 0.7 million on December 31, 2009; on March 31, 2009, QSC's net debts
had still stood at EUR -8.2 million.
QSC's sights set on free cash flow of more than EUR 22 million
Both the course of business in the first quarter of 2010 as well as the
sluggish pace of economic development are strengthening QSC's commitment to
the strategy for the current year that it had announced in early March. The
company will be focusing on lines of business that offer a sufficiently
high contribution margin, thus further strengthening its financial position
and profitability, and will be continuing its transformation from a network
operator to a services provider. At the same time, the company is
reiterating the guidance for the full fiscal year that it had first
announced on March 3, 2010: QSC thus plans to improve its free cash flow to
more than EUR 22 million from EUR 12.9 million in fiscal 2009, while
simultaneously anticipating a further rise in revenues, EBITDA and net
income. During the past fiscal year, the company had earned an EBITDA of
EUR 76.9 million and net income of EUR 5.5 million on revenues of EUR 420.5
million.
In EUR millions Q1 2010 Q1 2009
Revenues 105.9 107.6
Gross profit 37.6 36.5
EBITDA 19.6 19.5
EBIT 3.9 2.5
Net income 3.2 1.4
Free cash flow 4.6 4.0
Net liquidity 5.3 0.7*
Liquidity 41.0 41.3*
CAPEX 7.3 11.5
Workforce 651 664*
* As of December 31, 2009
Queries to:
QSC AG
Arne Thull
Investor Relations
Phone: +49 221 6698-724
Fax: +49 221 6698-009
E-mail: [email protected]
Internet: www.qsc.de
Notes:
The 3-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.
10.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: 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: [email protected]
Internet: www.qsc.de
ISIN: DE0005137004
WKN: 513700
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart
End of News DGAP News-Service
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