DGAP-News: QSC boosts revenues to EUR 32.3 million in third quarter of 2019

QSC boosts revenues to EUR 32.3 million in third quarter of 2019

- Cloud and Consulting drive growth
- Financial and earnings position on target
- Full-year forecast for 2019 confirmed

Cologne, 11 November 2019. Having sold its telecommunications business as of 30 June 2019, QSC AG is now on a growth course. As already announced on 15 October 2019, growth in Cloud and Consulting, now the two largest segments, led revenues to rise to EUR 32.3 million in the past quarter. Excluding Plusnet, revenues for the second quarter of 2019 amounted to EUR 30.1 million. QSC therefore generated quarter-on-quarter growth of 7%*. Cloud revenues from the activities of Cloud Services and IoT rose to EUR 10.2 million, up 24% on the second quarter of 2019. Consulting revenues grew by 5% to EUR 10.6 million. The Outsourcing segment generated revenues of EUR 7.0 million, as against EUR 7.3 million in the previous quarter, while the Colocation business improved its revenues to EUR 4.6 million, up from EUR 4.5 million in the second quarter of 2019.

Sequential growth from quarter to quarter expected

Explains Company CEO Jürgen Hermann: "QSC is growing. The market is convinced by our integrated solution competence and sector expertise." This is underlined, among other factors, by the new orders of around EUR 107 million received in the first nine months. Adds Hermann: "We are acquiring new customers from quarter to quarter and expanding our relationships with existing customers." In view of this, he expects to see sequential growth in the current fourth quarter of 2019 and beyond. The Company has budgeted revenues of around EUR 33 million for the fourth quarter of 2019.

QSC's earnings and financial position also developed on budget in the first quarter since the Plusnet sale. EBITDA for the third quarter of 2019 stood at EUR -2.2 million. Depreciation and amortisation totalled EUR 4.1 million, of which EUR 1.2 million on right-of-use assets for leases recognised under IFRS 16. Operating earnings (EBIT) amounted to EUR -6.3 million. Due to positive tax effects resulting from the Plusnet transaction, consolidated net income for the third quarter of 2019 amounted to EUR -2.6 million. As expected, the free cash flow came to EUR -11.8 million. This was due to the inclusion of one-off payments of EUR 8.8 million for transaction and consulting expenses, among other items, in the wake of the Plusnet sale and as a result of performance-based commission payments.

Given its business performance, which was on target, QSC can confirm its full-year forecast for 2019. According to this, which includes Plusnet contributions for the first half of 2019, the Company expects to generate revenues of more than EUR 235 million, EBITDA of more than EUR 140 million and free cash flow of more than EUR 130 million. At the end of the first nine months, revenues stood at EUR 204.9 million, EBITDA at EUR 143.6 million and the free cash flow at EUR 140.2 million.

Key figures for the third quarter of 2019 - the first quarter after the sale of the TC subsidiary Plusnet*

Notes:
* In presenting revenues, this Corporate News, like the underlying Quarterly Statement, focuses on comparing the second quarter with the third quarter of 2019 and does not consider the revenues generated by Plusnet through to 30 June 2019. Comparison of total revenues - or with the previous year's figures - would cloud any understanding of the current operating business performance. The TC business pooled at Plusnet traditionally accounted for well over half of QSC's revenues and costs. This being so, we have also not provided any year-on-year comparison of the cost and earnings figures in this Corporate News or the Quarterly Statement. All disclosures are presented in the Quarterly Statement, which can be downloaded at www.qsc.de/en/investor-relations.
This Corporate News contains forward-looking statements that are based on current expectations and forecasts on the part of the management of QSC AG with regard to future events. Due to risks or erroneous assumptions, actual events may deviate materially from these forward-looking statements.

Contact:
QSC AG
Arne Thull
Head of Investor Relations
T +49 221 669 8724
F +49 221 669 8009
[email protected]
www.qsc.de