Outlook for 2012: QSC anticipates revenues of € 480 – € 510 million

In fiscal 2012, QSC will largely conclude its transformation process from a TC provider into an ICT provider, and will be driving the integration of INFO AG and IP Partner. The merger of these two subsidiaries that was announced in January 2012, and the resulting acquisition of the remaining INFO AG shares, will facilitate Group-wide collaboration and serve as a key prerequisite for sustained profitable growth in 2013 and beyond. The uncertain economic situation in early 2012 makes it extremely difficult to properly assess the resulting dynamic. Regardless of the economy, though, QSC expects to see a further decline in conventional TC lines of business, such as call by call and ADSL2+, on the order of some € 25 million in 2012. On the other hand, the Company plans to grow faster than the market in such ICT lines of business as Outsourcing and Consulting.

Overall, the QSC Group anticipates revenues of between € 480 and € 510 million in fiscal 2012. Given that this will be the first full-year consolidation of these two subsidiaries, the Company is striving for an EBITDA margin of at least 16 percent. In addition, the Company expects to see a free cash flow of between € 22 and € 32 million. This guidance takes into account planned capital investments in growth, especially in Direct Sales, and for the first time does not include any payments from TELE2, the former co-owner of network operating company Plusnet.