DGAP-News: QSC doubles free cash flow and quadruples consolidated net income in 2010
(firmenpresse) - DGAP-News: QSC AG / Key word(s): Final Results/Preliminary Results
QSC doubles free cash flow and quadruples consolidated net income in
2010
28.02.2011 / 07:50
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QSC doubles free cash flow and quadruples consolidated net income in 2010
Preliminary numbers for 2010
- Successful transformation process: IP-based revenues rise by 11%
- Greater profitability: Consolidated net income rises to EUR 24.2
million
- Stronger financial position: Free cash flow rises to EUR 27.7 million
Forecast for 2011
- Free cash flow of EUR 35 to EUR 45 million planned
- First distribution of a dividend planned for the current fiscal year
Cologne, February 28, 2011. The development of business at Cologne-based
QSC AG continued to be driven in 2010 by the company's transformation
process from a network operator to a provider of ICT services. As a result
of its focus on higher-margin IP-based revenues, QSC was able to
significantly improve its financial position and profitability, thus
enabling it to fully achieve its expectations for the 2010 fiscal year as
announced throughout the year.
Revenues rose to EUR 422.1 million in 2010 from EUR 420.5 million the year
before. While revenues with the classical products of a network operator,
such as Call by Call and ADSL2+, declined by EUR 26.1 million to EUR 133.2
million in 2010, revenues with IP-based products and services advanced by a
total of EUR 27.7 million to EUR 288.9 million. This means that in 2010 QSC
was already generating 68 percent of its revenues in these forward-looking
lines of business. The advances the company has made in its transformation
process are illustrated by the quarter-to-quarter development of business:
The share of IP-based revenues rose from 65 percent in the first quarter of
2010 to 72 percent in the fourth quarter.
The transformation into an ICT service provider as well as sustained strict
cost discipline enabled QSC to further increase its EBITDA to EUR 78.1
million in 2010 from EUR 76.9 million the year before; this raised the
EBITDA margin to 19 percent. As anticipated, declining depreciation expense
played a major role in enabling QSC to more than double its operating
profit - its EBIT - during the same period; this metric rose to EUR 20.9
million, compared to EUR 9.7 million the year before; the EBIT margin
increased to 5 percent. Given its sustained and growing profitability, in
2010 the company recognized deferred taxes on losses carried forward, in
accordance with IFRS, which had a positive effect of EUR 5.3 million on
taxes. This increased net consolidated income after taxes to EUR 24.2
million, compared to EUR 5.5 million the year before; earnings per share
rose to EUR 0.18, compared to EUR 0.04 in 2009.
Net liquidity stands at EUR 28.4 million
The company's significantly higher profitability in 2010 led to
significantly higher cash flows. QSC was able to more than double free cash
flow to EUR 27.7 million during the past fiscal year from EUR 12.9 million
the year before. Related to this, liquid assets rose by EUR 5.2 million to
EUR 46.5 million as of December 31, 2010. At the same time, QSC reduced its
interest-bearing liabilities by EUR 22.5 million to EUR 18.1 million. This
renewed significant reduction in debt enabled net liquidity to rise to EUR
28.4 million, compared to EUR 0.7 million as of December 31, 2009.
As a providerof ICT services, QSC was able to significantly reduce its
capital expenditures during the past fiscal year: Totaling EUR 29.2
million, they were some 30 percent lower than the previous year's level of
EUR 42.2 million. The share of total revenues accounted for by capital
expenditures declined from 10 percent to 7 percent.
Stronger financial position and greater profitability
During the current fiscal year, QSC will continue its transformation
process into an ICT services provider, and expects that this will further
strengthen its profitability and financial position. The company plans to
increase free cash flow to EUR 35 to EUR 45 million. In addition, QSC plans
to distribute its first ever dividend for this fiscal year.
QSC Chief Executive Officer Dr. Bernd Schlobohm explains: '2010 was a
successful year for QSC, as we made great progress in the transformation
process. And in 2011 the focus will continue to be on evolving the company
into a provider of ICT services and thus on concentrating on higher-margin
IP-based revenues. Medium-term, we will be able to tap into attractive
growth and profitability potential through new offerings such as Housing
and Hosting, as well as an innovative Cloud Computing platform.'
In EUR millions 2010 2009*As of December 31
Revenues 422.1 420.5
- IP-based 288.9 261.2
EBITDA 78.1 76.9
EBIT 20.9 9.7
Consolidated net income 24.2 5.5
Free cash flow 27.7 12.9
Net liquidity* 28.4 0.7
Liquid assets* 46.5 41.3
Capital expenditures 29.2 42.2
Workforce* 608 664
Queries to:
QSC AG
Arne Thull
Investor Relations
Phone: +49 221 6698-724
E-mail: invest(at)qsc.de
Internet: www.qsc.de
Notes:
The annual report will be available for download at
www.qsc.de/en/qsc-ag/investor-relations.html at March 31, 2011. 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-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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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Datum: 28.02.2011 - 07:50 Uhr
Sprache: Deutsch
News-ID 33310
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