QSC posts substantial earnings growth in first quarter of 2016
- EBITDA grows to € 9.7 million
- EBIT positive again for the first time in seven quarters
- Cloud business grows significantly
- Pure Enterprise Cloud positively received
Cologne, 9 May 2016. In 2015, QSC positioned itself as digitiser to the German SME sector and initiated a comprehensive organisational restructuring programme that will be completed by the end of 2016. The measures taken in this context led to an improvement in the Company’s earnings position in the first quarter of 2016: EBITDA grew to € 9.7 million, up from € 9.1 million in the previous year’s quarter. The EBITDA margin rose by 1 percentage point to 10%. Due to lower depreciation and amortisation, among other things, EBIT improved to € 0.6 million in the first quarter of this year, up from € -3.0 million in the previous year’s quarter. Revenues came to € 98.9 million, as against € 104.7 million in the first quarter of 2015. While cloud revenues virtually doubled, also in connection with the market launch of the Pure Enterprise Cloud, the conventional telecommunications business with resellers and the traditional outsourcing business witnessed a decline in revenues – consistent with expectations.
One core component of the organisational restructuring currently underway involves consistently implementing the cost-cutting programme introduced at the beginning of 2015. This also involves downsizing the workforce to around 1,350 employees by the end of 2016. As of 31 March 2016, QSC still had around 1,400 employees. At the same time, the Company has been selectively recruiting cloud experts to boost the high-growth business associated with the Pure Enterprise Cloud. The Company is thus pressing ahead with its transformation into the digitiser of the German SME sector.
QSC confirms forecast for 2016
The current financial year began as planned and QSC can therefore confirm the forecast published at the end of February. In 2016, the Company expects to generate revenues of between € 380 million and € 390 million and a positive free cash flow. Given the one-off costs incurred to expand the Pure Enterprise Cloud and for the personnel restructuring measures still underway, the Company expects to generate EBITDA in a range of € 34 million to € 38 million. This figure includes one-off costs in a medium single-digit million euro range for the organisational restructuring measures due above all in the second half of the year.
Comments CEO Jürgen Hermann: “QSC can report a good start to the year. I am very satisfied with the progress in our Cloud business. The Pure Enterprise Cloud has been positively received by SME companies – and that includes both existing and new customers.”
|€ million||Q1 2016||Q1 2015||Change|
|Cloud revenues||2.4||1.3||+84.6 %|
|Consulting revenues||10.0||9.8||+2.0 %|
|Outsourcing revenues||32.1||36.8||-12.8 %|
|Telecommunications revenues||54.4||56.8||-4.2 %|
|– with resellers||32.0||35.0||-8.6 %|
|– with corporate customers||22.4||21.8||+2.8 %|
|Consolidated net loss||-0.1||-3.4||+97.1%|
|Free cash flow||-0.8||-4.4||+81.8 %|
|Capital expenditure||3.6||3.5||+2.9 %|
|Number of employees as of 31 March||1,409||1,666||-15.4 %|
The complete Quarterly Statement can be downloaded at www.qsc.de/en/investor-relations. This Corporate News includes forward-looking statements. These are based on current expectations and forecasts as to future events made by the management of QSC AG. Due to risks or erroneous assumptions, actual results may deviate substantially from these forward-looking statements.