QSC again focusing on strengthening financial position and profitability in 2010
Cologne, March 31, 2010. QSC AG today presented its 2009 Annual Report. There were no changes from the preliminary numbers that were announced on March 3, 2010.
During the past fiscal year, QSC earned an EBITDA of € 76.9 million on revenues of € 420.5 million, increasing its EBITDA margin to 18 percent as opposed to 16 percent the year before. EBIT improved from € 6.1 million to € 9.7 million, while net income advanced to € 5.5 million as opposed to € 0.8 million in fiscal 2008. In the face of an extremely difficult environment, QSC was thus able to strengthen its profitability considerably during the past fiscal year. The company's financial position, too, improved significantly in 2009: QSC earned a positive free cash flow of € 12.9 million, and was free of net indebtedness as of December 31, 2009.
As anticipated, during the current fiscal year the economy is recovering only sluggishly from the effects of the global financial and economic crisis. In this environment, QSC continues to focus on strengthening its financial position and profitability. As announced in early March 2010, the company is planning on improving free cash flow to more than € 22 million and on further rises in revenues, EBITDA and net income. Moreover, QSC intends to pay its first dividend for the 2011 fiscal year.
QSC Chief Executive Officer, Dr. Bernd Schlobohm, notes: "2010 will clearly see QSC evolve from a network operator to a service provider. Medium-term, this transformation will open up new potential to our company for profitable growth." With its increasing offerings of IP-based services, QSC will be able to double its addressable market to nearly € 20 billion in the coming years. Schlobohm: "The digital age is seeing the convergence of information and telecommunications technologies. With our IP-based Next Generation Network, we possess an extremely efficient platform for making the most of this convergence."
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The annual report is available for download at www.qsc.de/en/qsc-ag/investor-relations.html. This corporate news contains forward-looking statements. These forward-looking statements are based on current expectations and forecasts of future events by the management of QSC AG. Due to risks or mistaken assumptions, actual results may deviate substantially from those made in such forward-looking statements. The assumptions that may involve material deviations due to unforeseeable developments include, but are not limited to, the demand for our products and services, the competitive situation, the development, dissemination and technical performance of DSL technology and its prices, the development and dissemination of alternative broadband technologies and their respective prices, changes in respect of telecommunications regulation, legislation and adjudication, prices and timely availability of essential third-party services and products, the timely development of additional marketable value-added services, the ability to maintain and enlarge upon marketing and distribution agreements and to conclude new marketing and distribution agreements, the ability to obtain additional financing in the event that management's planning targets are not attained, the punctual and full payment of outstanding debts by sales partners and resellers of QSC AG, and the availability of sufficient skilled personnel.