QSC: High EBITDA and high free cash flow in Q2 2019 due to Plusnet sale
- QSC posts revenues of € 85.2 million and EBITDA of € 129.9 million
- Free cash flow of € 156.7 million in second quarter of 2019
- Debt repaid in full as of 30 June 2019
- QSC expects revenue growth from third quarter of 2019 already
Cologne, 5 August 2019. The sale of the Plusnet telecommunications subsidiary, closed at the end of June 2019, is a major milestone in QSC’s realignment with a clear technology and sector focus. In the second quarter of 2019, QSC generated revenues of € 85.2 million and EBITDA of € 129.9 million. EBITDA mostly comprises the result of deconsolidation, which in turn mainly represents accounting gains resulting from the difference between the sale price achieved and the carrying amounts. The free cash flow amounts to € 156.7 million and is greatly influenced by the inflow of liquidity from the Plusnet sale. As previously announced, QSC fully repaid its debt of € 120.0 million. Together with one-off consolidated net income of € 106.1 million, this led the equity ratio to improve from 32% as of 31 December 2018 to 73% as of 30 June 2019.
Cloud revenues surge 26% in second quarter of 2019
QSC is with immediate effect a growth company and is focusing on the three markets of Cloud, SAP and IoT as well as on the retail, manufacturing and energy sectors. Revenues in the Cloud segment, with its two main fields of activity, Cloud Services and IoT, rose to € 10.2 million in the second quarter of 2019, up from € 8.1 million* in the previous year. Consulting revenues, mainly resulting from the provision of SAP-based consulting services, grew year on year by 13% to € 10.6 million in the second quarter. Revenues in the two other segments, Outsourcing and Telecommunications, decreased in line with expectations compared with the previous year. Overall, QSC generated revenues of € 85.2 million in the second quarter of 2019, compared with € 91.8 million in the previous year’s period. Of quarterly revenues, € 55.1 million are attributable to Plusnet, and € 30.1 million to QSC.
QSC confirms full-year 2019 forecast
QSC’s growth course will become visible in the current quarter already: The Company expects to generate revenues of around € 32 million in the third quarter of 2019. For the year as a whole, QSC still expects to generate revenues of more than € 235 million, EBITDA of more than € 140 million and free cash flow of more than € 130 million. Comments QSC’s CEO Jürgen Hermann: “QSC is a growth company once again. We have a clear technology and sector focus and will be making targeted investments in sales, marketing and innovative technologies.” A volume of up to € 20 million is planned for this year already. Furthermore, the Company intends to invest in acquiring technologies in order to expand its portfolio and extend its value chain. This strategy is confirmed by QSC’s most recent sales successes, which include Datev, DIY store chain Fishbull and steel group Schmolz + Bickenbach. Remarks Jürgen Hermann: “Our portfolio is convincing SME players, as is apparent from the new orders received in the first half of the year.”
|€million||Q2 2019||Q2 2018|
|Consolidated net income||106.1||0.4|
|Free cash flow||156.7||3.6|
|Employees as of 30 June||1,286 (excluding Plusnet: 884)||1,305|
The complete Half-Year Report 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.
* The current financial statements include a correction in revenues and in cost of revenues amounting to € 0.3 million in each case. An internal review carried out in advance established that revenues not meeting the requirements for recognition as such had been stated in the Cloud segment. The revenues and corresponding cost of revenues reported for the 2018 financial year as a whole were respectively € 3.5 million and € 3.4 million too high. In accordance with IAS 8, upon preparing its 2019 Half-Year Report QSC has retrospectively corrected this error made in the 2018 financial year.
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