Corporate | 6 March 2017 07:30
QSC maintains strong Cloud growth in 2016 and 2017
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DGAP-News: QSC AG / Key word(s): Preliminary Results/Forecast
QSC maintains strong Cloud growth in 2016 and 2017
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Preliminary figures for 2016: Revenues on target at EUR 386.0 million
Revenue growth in all strategic business fields Based on preliminary calculations, QSC generated revenues of EUR 386.0 million in 2016, as against EUR 402.4 million in 2015. The highest growth was achieved in Cloud, the newest segment, where revenues surged year-on-year by 148 % to EUR 18.1 million. This high growth was driven by QSC’s success in marketing its Pure Enterprise Cloud and IoT portfolio. Consulting revenues grew by 6 % to EUR 40.3 million, while TC revenues with corporate customers rose by 4 % to EUR 91.8 million. Consistent with expectations, QSC posted lower revenues in its TC business with resellers (down 9 % to EUR 118.4 million) and its traditional Outsourcing business (down 15 % to EUR 117.4 million). Among other factors, 2016 witnessed the migration of the first traditional Outsourcing customers to the Pure Enterprise Cloud. Comments QSC’s CEO Jürgen Hermann: “I am satisfied with our business performance in 2016. We have for the first time demonstrated the momentum harboured by the Cloud business. We will be building on this in 2017 and beyond.” Successful completion of cost-cutting programme QSC laid a foundation for focusing more closely on its Cloud business in the past two years by implementing a far-reaching organisational restructuring process. The Company completed the associated cost-cutting programme at the end of 2016. Among other measures, in 2015 and 2016 QSC succeeded in downsizing its workforce by almost 350 employees. The Company still had 1,360 employees at the end of 2016. These staff cuts and organisational restructuring measures led to further one-off expenses in the second half of the year in particular. Accordingly, and consistent with expectations, EBITDA for 2016 came to EUR 37.1 million, as against EUR 42.2 million one year earlier. Due to the one-off write-downs of EUR 15.2 million already announced on 20 December 2016, based on preliminary calculations QSC generated consolidated net income of EUR -25.1 million in 2016 compared with EUR -13.2 million in 2015. 2017: QSC plans revenues of EUR 355-365 million and EBITDA of EUR 36-40 million
In the current financial year, QSC is continuing to focus on those business fields in which it expects to generate future growth – and above all on its Cloud and Consulting businesses and its TC business with corporate customers. The Company expects to see the highest growth rates once again in its Cloud segment with its two key focuses of Pure Enterprise Cloud and IoT. Overall, for the current financial year QSC has budgeted revenues of between EUR 355 million and EUR 365 million, and EBITDA of between EUR 36 million and EUR 40 million. The main factor preventing a better revenue performance is the TC business with resellers. Due to market and regulatory conditions, QSC expects revenues here to decline by around EUR 25 million. This will be accompanied by a budgeted reduction in revenues in the traditional Outsourcing business. Irrespective of these developments, the Company expects to generate a free cash flow ahead of the previous year’s figure of EUR 8.4 million.
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06.03.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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| Language: | English |
| Company: | QSC AG |
| Mathias-Brüggen-Straße 55 | |
| 50829 Cologne | |
| Germany | |
| Phone: | +49-221-669-8724 |
| Fax: | +49-221-669-8009 |
| E-mail: | invest@qsc.de |
| Internet: | www.qsc.de |
| ISIN: | DE0005137004 |
| WKN: | 513700 |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| End of News | DGAP News Service |