29.02.2016
QSC AG DE0005137004
DGAP-News: As planned, QSC increases earnings and financial strength in 2015
DGAP-News: QSC AG / Key word(s): Preliminary Results/Forecast
As planned, QSC increases earnings and financial strength in 2015
29.02.2016 / 07:30
The issuer is solely responsible for the content of this announcement.
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As planned, QSC increases earnings and financial strength in 2015
- Revenues of EUR 402.4 million based on preliminary calculations
- EBITDA improves to EUR 42.2 million
- Free cash flow rises to EUR 7.1 million
- Cloud business to be consistently expanded in current financial year
- Return to growth course in 2017
Cologne, 29 February 2016. Based on preliminary calculations, QSC achieved
all of its forecasts for the 2015 financial year, some of which were raised
in the course of the year, and successfully implemented its cost-cutting
programme. The Company will be completing this programme in the current
financial year, while also pressing ahead with further substantial
expansion in its Cloud business. Already in mid-February 2016, QSC
presented the new Pure Enterprise Cloud service portfolio. This way, the
Company expects to return to overall revenue growth once again from 2017
onwards.
QSC achieved revenues of EUR 402.4 million in 2015, as against EUR 431.4
million in the previous year. The two smaller segments, Cloud and
Consulting, generated growth. Consistent with expectations, however, in its
TC business with resellers the Company witnessed a substantial downturn in
revenues due to market and regulatory factors. As expected, the Outsourcing
segment also reported lower revenues. Despite the reduction in overall
revenues, EBITDA based on preliminary calculations improved to EUR 42.2
million, up from EUR 35.0 million in the previous year. As expected, the
cost-cutting programme led to savings of significantly more than EUR 10
million in 2015 already, with around half of this sum due to staff cuts. As
of 31 December 2015, the total number of employees came to 1,454, compared
with 1,697 as of 31 December 2014. These cost savings also contributed
substantially to the increase in free cash flow to EUR 7.1 million, up from
EUR -24.9 million in 2014.
Proposed dividend of 3 cents
In view of these developments, the Company plans to distribute a dividend
once again for the 2015 financial year. The Management Board proposes a
distribution of 3 cents per share. As was the case for the 2015 financial
year, the Management Board will chiefly refer to the free cash flow when
determining dividend policy in the years ahead as well.
In the current financial year, the Company will be focusing on expanding
its Cloud business, marketing its Pure Enterprise Cloud and, linked to
this, implementing a broad-based sales offensive. QSC also expects to see a
further rise in revenue and earnings contributions in its Consulting
business. In its TC business with resellers, the Company has budgeted a
further decline in revenues. The same applies to Outsourcing, particularly
as customers there will gradually be migrated to the Pure Enterprise Cloud.
The expansion in the Cloud business will require additional specialists to
be hired in the current financial year. Consistent with its plans, the
Company will nevertheless be scaling down its workforce by 350 employees by
the end of 2016 compared with the end of 2014, thus largely completing its
reorganisation programme. These measures are expected to result in one-off
costs in a medium single-digit million euro range.
QSC plans revenues of EUR 380 million to EUR 390 million
Against this backdrop, QSC expects to generate revenues of between EUR 380
million and EUR 390 million and a positive free cash flow in the current
financial year. Given the one-off costs incurred to expand the Pure
Enterprise Cloud and for staff reorganisation measures, the Company expects
EBITDA in a range of EUR 34 million to EUR 38 million.
Comments QSC's CEO Jürgen Hermann: "Our strategy is still absolutely right
and is now taking effect. We have made great progress, particularly in our
Cloud business. On this basis, QSC will return to its growth course from
2017 onwards and successfully establish itself as the digitiser for the
German SME sector."
Notes:
The 2015 Annual Report of QSC AG will be available from 30 March 2016 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.
Further information is available from:
QSC AG
Arne Thull
Head of Investor Relations
Tel: +49 221 669-8724
E-mail: [email protected]
Internet: www.qsc.de
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29.02.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: QSC AG
Mathias-Brüggen-Straße 55
50829 Köln
Germany
Phone: +49-221-6698-724
Fax: +49-221-6698-009
E-mail: [email protected]
Internet: www.qsc.de
ISIN: DE0005137004
WKN: 513700
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart; Terminbörse EUREX
End of News DGAP News Service
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