QSC posts significantly higher profitability in second quarter of 2013
- EBITDA advances by 6 percent to € 19.2 million
- EBIT improves by 35 percent to € 6.6 million
- Consolidated net income increases by 79 percent to € 5.2 million
- Higher profitability in spite of regulatory-induced revenue shortfall
- Guidance reiterated for full 2013 fiscal year
Cologne, August 12, 2013. QSC sustained its good operating development in the second quarter of 2013, benefiting from the continued growth of its high-margin ICT business. On the other hand, revenues declined in conventional TC business; the effect of heightened regulation since December 1, 2012, alone, is resulting in revenue shortfalls of between € 7 and € 8 million per quarter during the current fiscal year, along with an EBITDA burden of nearly one million euros.
10-percent growth in largest business unit, Direct Sales
In the second quarter of 2013, QSC generated revenues of € 113.5 million, as opposed to € 116.6 million for the same quarter one year earlier. While predominantly conventional TC revenues with resellers fell by 23 percent to € 32.4 million as a result of regulatory and market effects, ICT revenues were up in the other two business units. Revenues rose by 10 percent to € 50.3 million in Direct Sales and by 7 percent to € 30.8 million in Indirect Sales.
ICT business is benefiting from a high, ongoing level of order bookings: This metric stood at € 30.5 million in the second quarter of 2013, in contrast to € 12.4 million for the same quarter the year before. QSC Chief Executive Officer Jürgen Hermann notes: "A major share of these orders is attributable to multiple-year Outsourcing projects and comes from small and mid-size enterprises. More than ever before, what they want are data center locations in their vicinity and sophisticated security concepts. This is where QSC can really score points." The company operates its TÜV- and ISO-certified data centers exclusively in German locations.
The growing share of ICT revenues made a major contribution to QSC's higher profitability in the second quarter of 2013. EBITDA rose to € 19.2 million, up from € 18.1 million in the second quarter of 2012; the EBITDA margin increased by 1 percentage point to 17 percent. Consolidated net income improved to € 5.2 million from € 2.9 million for the same quarter the year before. At € 6.5 million, free cash flow remained at the previous quarter's level of € 6.6 million.
Given its positive operating development during the first half of 2013, QSC is reiterating its guidance for the full fiscal year. The company is planning for an EBITDA margin of at least 17 percent and a free cash flow in the amount of at least € 24 million on revenues of at least € 450 million. Operating business is likely to again develop on a two-track basis during the second half of the year: Rising ICT revenues will offset declining conventional TC revenues, especially in the Resellers Business Unit.
|In € million||Q2 2013||Q2 2012|
|Consolidated net income||5.2||2.9|
|Free cash flow||6.5||6.6|
|Capital expenditures (capex)||8.7||10.9|
The 6-month 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.