QSC off to a good start in 2009 / 2008 Annual Report presented
Cologne, March 31, 2009. QSC AG today presented its 2008 Annual Report. There were no material changes to the preliminary results that had been announced on February 26, 2009.
QSC grew its revenues by 23 percent to € 413.3 million in fiscal year 2008, as opposed to € 335.2 million the year before. EBITDA nearly doubled to € 67.3 million, as opposed to € 34.9 million the year before. This represents an EBITDA margin of 16 percent, in contrast to 10 percent in fiscal 2007. EBIT advanced to € 6.1 million, as opposed to € -11.5 million in 2007; in this connection all three segments earned an operating profit. Moreover, QSC recorded a net profit of € 0.8 million, as opposed to a net loss of € -11.7 million the year before. Synergies following the Broadnet merger, sustained cost discipline and strong growth combined to produce this significantly improved profitability in 2008. Chief Executive Officer Dr. Bernd Schlobohm: "In spite of the onset of the recession, 2008 was a highly successful year for QSC. Building upon this, we intend to remain on our success course during the current fiscal year, while increasing our financial strength and profitability."
In what is currently a difficult market environment, QSC is rigorously focusing on further improving the quality of its revenues, giving higher priority to profitability over pure revenue growth. The company's operative business has developed well during the first two months of the current fiscal year; this applies, in particular, with respect to new orders in business with IP-VPN customers and to its fast-growing wholesale voice business. Given this background, QSC is reiterating the guidance for the full 2009 fiscal year that it announced on February 26, 2009: The company anticipates a positive free cash flow of more than € 10 million, as well as an EBITDA of between € 68 and € 78 million. Going hand in hand with this will be planned annual revenues of between € 420 and € 440 million, as well as a sustained net profit.
The annual report is available under www.qsc.de/en/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.