Corporate | 9 November 2015 07:30


QSC increases EBITDA and free cash flow in third quarter of 2015 as well


DGAP-News: QSC AG / Key word(s): Quarter Results

2015-11-09 / 07:30

QSC increases EBITDA and free cash flow in third quarter of 2015 as well

– EBITDA improves by 36 percent to EUR 12.0 million
– Free cash flow rises by 43 percent to EUR 5.3 million
– Raised full-year forecast for 2015 confirmed


Cologne, 9 November 2015. The consistent implementation of the cost-cutting programme introduced at the end of February 2015 is paying off for QSC: All key earnings figures for the third quarter of 2015 increased when compared both with the third quarter of the previous year and the second quarter of 2015. The Company is making rapid headway, particularly in terms of downsizing its workforce. By 30 September 2015, employment termination agreements had already been signed with 230 employees, corresponding to two thirds of the total aimed at by the end of 2016. Given the progress made, the Company can confirm the increase in the full-year forecast for 2015 issued in August 2015. QSC thus expects to generate EBITDA of more than EUR 42 million and a free cash flow of more than EUR 5 million based on revenues totalling more than EUR 400 million.

Consistent with expectations, revenues for the third quarter of 2015 came to EUR 100.0 million, as against EUR 106.6 million in the previous year’s quarter. Revenues in the two smaller segments of Consulting and Cloud rose substantially. In Telecommunications, its largest segment, QSC continues to report stable revenues with corporate customers and, due to market and regulatory factors, a further decrease in revenues with resellers targeting private customers. Revenues in the Outsourcing segment have been affected by the ongoing reorganisation programme, which is characterised by a focus on higher-margin revenues and the introduction of standardised cloud-based products. From 2016, QSC will enable its customers to gradually migrate to the cloud age with its Pure Enterprise Cloud. The progress made in reorganising the Outsourcing business is underlined by the renewed increase in order intake to EUR 58.8 million, compared with EUR 55.3 million in the third quarter of 2014.

EBITDA margin rises to 12 percent

Thanks to the focus on higher-margin revenues and success in reducing costs, gross profit for the third quarter of 2015 rose year-on-year by 6 percent to EUR 27.6 million. EBITDA for the same period improved by 36 percent to EUR 12.0 million, while EBIT increased by 85 percent to EUR -0.6 million, and consolidated net income by 73 percent to EUR -1.7 million. At 12 percent, the EBITDA margin has now regained the level seen at the beginning of 2014. The free cash also developed positively, rising from EUR 3.7 million in the previous year’s period to EUR 5.3 million in the third quarter of 2015.

EUR million Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014
Revenues 100.0 100.9 104.7 106.4 106.6
Gross profit 27.6 27.2 27.1 20.3 26.1
EBITDA 12.0 10.6 9.1 2.3 8.8
EBIT -0.6 -2.2 -3.0 -29.2 -3.9
Consolidated net income -1.7 -2.7 -3.4 -24.1 -6.2
Free cash flow 5.3 1.5 -4.4 -38.2 3.7
Capital expenditure 7.2 3.9 3.5 10.8 6.3
Number of employees 1,507 1,585 1,666 1,697 1,709

Notes:
The 9-month report can be downloaded at www.qsc.de/en/qsc-ag/investor-relations.html . This Corporate News contains forward-looking statements that are based on current expectations and forecasts on the part of the management 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




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Language: English
Company: QSC AG
Mathias-Brüggen-Straße 55
50829 Köln
Germany
Phone: +49-221-6698-724
Fax: +49-221-6698-009
E-mail: invest@qsc.de
Internet: www.qsc.de
ISIN: DE0005137004
WKN: 513700
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart
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