Corporate | 28 February 2011 07:50
|
QSC AG / Key word(s): Final Results/Preliminary Results
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 provider of 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.'
*As of December 31
Queries to:
Notes:
End of Corporate News 28.02.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. 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: | invest@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 |
|
|
| 113613 28.02.2011 |