DGAP-News: QSC plans to triple net income and double free cash flow in 2010
(firmenpresse) - QSC AG / Quarter Results
09.08.2010 07:51
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QSC plans to triple net income and double free cash flow in 2010
- IP-based revenues grow by 12 percent to EUR 70.8 million in second
quarter of 2010; total revenues advance to EUR 104.9 million
- Net income rises from EUR 1.1 million to EUR 4.3 million
- Free cash flow increases from EUR 2.6 million to EUR 7.6 million
2010 guidance
- Net income to triple to more than EUR 16 million
- Free cash flow forecast raised to more than EUR 25 million
Cologne, August 9, 2010. In the second quarter of 2010, Cologne-based QSC
AG continued its transformation process from a network operator to a
service provider, increasing all key metrics. Revenues rose to EUR 104.9
million, as opposed to EUR 103.7 million for the same quarter one year
earlier. While revenues with such classical network operator products as
Call by Call and ADSL2+ declined by EUR 6.4 million to EUR 34.1 million,
revenues with IP-based products and services rose by EUR 7.6 million to EUR
70.8 million. In the second quarter of 2010, QSC was thus generating two
thirds of its revenues in these higher-margin lines of business.
QSC's profitability up sharply
As a result, gross profit for the past quarter rose to EUR 38.0 million, as
opposed to EUR 35.7 million for the same quarter the year before; gross
margin improved from 34 percent to 36 percent. EBITDA increased to EUR 19.7
million, as opposed to EUR 19.0 million in the second quarter of 2009; the
EBITDA margin rose by one percentage point to 19 percent. As a result of
depreciation expense declining as scheduled, in addition to other factors,
QSC was able to more than double its operating profit, its EBIT, to EUR 5.1
million in the second quarter of 2010, as opposed to EUR 2.3 million for
the same period one year earlier. Net income growth was even higher, nearly
quadrupling to EUR 4.3 million within the space of a year, as opposed to
EUR 1.1 million in the second quarter of 2009.
Net liquidity rises to EUR 12.9 million
In the second quarter of 2010, QSC earned a free cash flow of EUR 7.6
million, nearly tripling this key steering parameter within the space of a
year; in the second quarter of 2009, free cash flow had amounted to EUR 2.6
million. During the first six months of the current fiscal year, QSC earned
a free cash flow of EUR 12.1 million, as opposed to EUR 6.6 million for the
same period one year earlier. In this connection, liquid assets rose by EUR
2.7 million to EUR 44.0 million as of June 30, 2010, as opposed to EUR 41.3
million as of December 31, 2009. During the same period, QSC further
reduced its interest-bearing liabilities by EUR 9.4 million to EUR 31.1
million. This increased net liquidity to EUR 12.9 million as of June 30,
2010, as opposed to EUR 0.7 million as of December 31, 2009.
Guidance raised
Given its successes in the transformation process, QSC is raising its
guidance for the current fiscal year: The company now anticipates a free
cash flow of more than EUR 25 million, instead of more than EUR 22 million;
in 2009, QSC earned a free cash flow of EUR 12.9 million. In addition, the
company plans to grow its revenues and EBITDA and to triple net income tomore than EUR 16 million, as opposed to EUR 5.5 million in fiscal 2009.
During the past fiscal year, QSC earned an EBITDA of EUR 76.9 million on
revenues of EUR 420.5 million.
In EUR millions Q2 2010 Q2 2009* As of December 31, 2009
Revenues 104.9 103.7
Gross profit 38.0 35.7
EBITDA 19.7 19.0
EBIT 5.1 2.3
Net income 4.3 1.1
Free cash flow 7.6 2.6
Net liquidity 12.9 0.7*
Liquidity 44.0 41.3*
CAPEX 6.5 12.9
Workforce 633 665
Queries to:
QSC AG
Arne Thull
Investor Relations
Phone: +49 221 6698-724
Fax: +49 221 6698-009
E-mail: invest(at)qsc.de
Internet: www.qsc.de
Notes:
The 6-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.
09.08.2010 07:51 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.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: invest(at)qsc.de
Internet: www.qsc.de
ISIN: DE0005137004
WKN: 513700
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in München, Düsseldorf, Berlin, Stuttgart
End of News DGAP News-Service
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