QSC generates revenue growth of 6%
- Revenues rise to € 94.1 million in first quarter of 2018
- TC revenues improve by 16%, Cloud revenues up 37%
- Consistent with expectations, EBITDA amounts to € 9.2 million
- Consolidated net income rises to € 0.9 million
- QSC now expects revenues at upper end of € 345 million to € 355 million range
Cologne, 7 May 2018. The Cloud and ICT provider QSC increased its revenues to € 94.1 million in the first quarter of 2018, up from € 88.7 million in the previous year’s period. As was already the case at the end of 2017, QSC particularly benefited from high demand in the international voice termination business. Telecommunications revenues grew by 16% year-on-year to € 53.4 million. Cloud revenues for the same period rose by 37% to € 7.1 million. Developments in the other two business units, Consulting and Outsourcing, were in line with expectations.
EBITDA came to € 9.2 million in the first quarter of 2018, compared with the high figure of € 10.5 million in the previous year’s period. Operating earnings (EBIT) amounted to € 2.4 million, as against € 2.6 million in the first quarter of 2017. Consolidated net income for the same period rose to € 0.9 million, up from € 0.6 million. This growth in profit was due among other factors to the scheduled decrease in depreciation and amortisation to € 6.8 million, down from € 7.9 million in the first quarter of 2017. The free cash flow amounted to € -0.8 million, as against € 3.6 million in the previous year. This key figure thus returned to the level customary for the beginning of a year, at which time prepayments are made for the full year ahead.
After this strong start to the year, QSC expects its revenues to tend towards the upper end of the € 345 million to € 355 million range published in March 2018. The Company still expects to generate EBITDA of between € 35 million and € 40 million and free cash flow of more than € 10 million. Comments QSC’s CEO, Jürgen Hermann: “QSC is growing again! It is still too early to talk of a turnaround, but we are heading in the right direction.”
|€ million||Q1 2018||Q1 2017|
|Consolidated net income||0.9||0.6|
|Free cash flow||-0.8||3.6|
|Employees as of 31 March||1,342||1,355|
The complete quarterly statement can be downloaded at www.qsc.de/en/qsc-ag/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 results may deviate materially from these forward-looking statements.