DGAP-News: QSC AG

QSC grows in its Cloud business and raises its free cash flow forecast

- Cloud revenues up 63% in first nine months of 2017
- EBITDA margin improves to 11%
- EBIT rises 81% to EUR 6.5 million
- Consolidated net income increases to EUR 2.6 million
- Free cash flow forecast raised to between EUR 10 million and EUR 11 million

Cologne, 6 November 2017. Based on a business performance which was largely consistent with expectations, QSC further boosted its earnings and financial strength in the first nine months of 2017. While revenues decreased by EUR 29.1 million to EUR 264.8 million, the Company's EBITDA of EUR 29.3 million virtually matched the previous year's figure. The EBITDA margin improved by 1 percentage point to 11%. EBIT rose by 81% to EUR 6.5 million, while consolidated net income increased to EUR 2.6 million, as against EUR -0.1 million in the previous year. QSC thus generated positive consolidated net income for the third consecutive quarter. The increased earnings strength was driven in particular by the Company's improved cost base, as well as by a lower volume of depreciation and amortisation. QSC's lean cost structures were also one of the main factors driving the 12% improvement in free cash flow to EUR 8.7 million in the first nine months of 2017.

Particularly dynamic developments were seen in Cloud - the Company's newest segment - in the first nine months of 2017. Revenues here, which are generated above all with the Pure Enterprise Cloud and the Internet of Things (IoT) portfolio, surged year-on-year by 63% to EUR 19.5 million. QSC's revenues in its Consulting segment and its TC business with corporate customers were at the same level as in the previous year. Due to market and regulatory factors, however, TC revenues with resellers fell by EUR 22.9 million to EUR 68.4 million. Revenues in the Outsourcing segment decreased by EUR 13.4 million to EUR 77.9 million.

To account for the positive development in its free cash flow, QSC has raised its full-year forecast for 2017. Accordingly, the Company now expects to generate free cash flow of between EUR 10 million and EUR 11 million. It previously only expected to slightly exceed the previous year's figure of EUR 8.4 million. QSC still plans to generate revenues of EUR 355 million to EUR 365 million and EBITDA of between EUR 36 million and EUR 40 million. Comments QSC's CEO, Jürgen Hermann: "We are consistently implementing our plans for 2017 - gradually expanding our Cloud business, boosting our TC business with corporate customers and raising our profitability."
 

Notes:
The complete quarterly statement can be downloaded at www.qsc.de/en/qsc-ag/investor-relations.html. 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.

Contact for enquiries:
QSC AG
Arne Thull
Head of Investor Relations
T +49 221 669-8724
F +49 221 669-8009
invest@qsc.de
www.qsc.de