16.08.2018
EQS Group AG DE0005494165
DGAP-News: EQS Group AG reports double-digit revenue growth in the first half of 2018
DGAP-News: EQS Group AG / Key word(s): Half Year Results
EQS Group AG reports double-digit revenue growth in the first half of 2018
16.08.2018 / 08:00
The issuer is solely responsible for the content of this announcement.
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EQS Group AG reports double-digit revenue growth in the first half of 2018
Higher investment volume leads to lower EBITDA guidance
Munich - August 16, 2018
EQS Group AG (ISIN: DE0005494165) continues its positive corporate
development in the first half of 2018. The Group generated revenues of
EUR17.131 million in the first six months of the financial year, an increase
of 14% over the same period in the previous year. EBITDA decreased to -EUR50
thousand. Consolidated net income amounted to EUR148 thousand. Earnings per
share amount to EUR0.17.
For the second quarter, the following picture emerges for EQS Group: sales
amounted to EUR9.314 million (+15%), EBITDA fell by 78% down to EUR255
thousand, and consolidated net income amounted to EUR586 thousand. Earnings
per share for the period of April to June were EUR0.41 (previous year:
-EUR0.05).
The strategic expansion of the existing Investor Relations business area to
include the adjacent Governance, Risk & Compliance (GRC) business area
requires new segment reporting. There is a distinction between the two
markets of Investor Relations and Compliance. The Investor Relations segment
includes financial and corporate communications products which include:
News, Portals, Websites, Webcasts, and Media. The Compliance segment
includes all products required to fulfill legal or regulatory obligations.
Segment performance
In the Investor Relations segment, the number of clients increased by 47, up
to a total of 1,977. Sales remained close to the previous year's level at
EUR8.78 million (EUR8.66 million). In the Compliance segment, sales were
significantly higher, with a 31% increase in revenue, amounting to EUR8.35
million (EUR6.35 million). The number of Large Cap clients increased by 83,
up to a total of 1,022, the number of XML clients grew to 180, for a total
of 4,132, and LEI clients increased by 5,284, for a total of 15,205.
Investment volume increased
EQS Group AG has implemented its September 2017 decision to expand its core
business through the adjoining Governance, Risk & Compliance (GRC) business
unit, and to exclusively develop cloud-based solutions. This move has been
accompanied by an investment offensive to expand the Group into a technology
company. As a result, earnings have been burdened temporarily. Approximately
70 specialists are currently working on completing the new COCKPIT, and
product development is proceeding according to plan. Investment volume
increased, in particular to facilitate recruiting and address additional
required resources. The first version of the new COCKPIT will be introduced
in the fourth quarter of 2018.
Achim Weick, founder and CEO of EQS Group AG: "Our new COCKPIT will be
another milestone for both our customers and our company. Although the job
market for software developers is challenging, we are sticking to our
schedule. Beginning in 2019, we expect an increase in subscription revenues
and a further increase in our annually recurring revenues."
With the development of the Group into a technology company, and the
increasing importance of Software-as-a-Service (SaaS) revenues, EQS Group AG
introduced new business performance indicators at the beginning of this
fiscal year. These are largely focused on annually recurring revenues in
order to clarify revenue quality and scaling potential. The number of new
and total customers in reporting periods, as well as average revenue per
customer per quarter (QRPC), are both decisive factors for estimating growth
potential.
Annually recurring revenues at the Group level in Q2 are 82%. For the Large
Cap client group in Germany, this level is higher at 86%, a 10% increase.
These figures are based on a client base of 1,115 clients. The QRPC was
EUR3,100. In some foreign markets, the QRPC is lower, while other key
figures remain comparable to those of Germany.
Outlook: revenue growth progressing according to plan with lower EBITDA
For the 2018 financial year, the Executive Board plans a 19% - 24% increase
in revenues (EUR36 million - EUR37.6 million). Due to higher investments in
recruiting and additional development resources, the Executive Board now
expects a positive EBITDA of up to EUR1 million (previously: between EUR1.5
million and EUR2.1 million).
The board will discuss business results beginning at 11:00 am (CEST) on
today's conference call, which will be broadcasted live online at:
www.eqs.com.
Key figures (IFRS) 6M 2018 6M 2017 +/-
Revenues (in EUR mn) 17.131 15.014 14%
EBITDA (in EUR mn) -0.05 1.552 >-100%
EBIT (in EUR mn) -1.094 0.563 >-100%
Group Earnings (in EUR mn) 0.148 -0.176 >100%
Earnings per Share (EUR) 0.17 -0.13 >100%
Operating Cash Flow (in EUR mn) 1.199 -0.439 >100%
Liquid Funds (in EUR mn) 1.207 6.374* -81%
Employees (average of the reporting period) 429 340 26%
* as of Dec. 31, 2017
More information:
The figures for 6M 2018 are unaudited.
Receive news from EQS Group AG free of charge on your mobile device: via
DGAP News App directly to your AppleWatch or iPhone (
http://newsapp.dgap.de/).
EQS Group is a leading international technology provider for Investor
Relations, Corporate Communications, and Corporate Compliance. Several
thousand companies worldwide use EQS Group's offerings to fulfill complex
national and international disclosure obligations, to minimize risk, and to
reach stakeholders.
EQS Group is a digital single-source provider for global teams. EQS Group's
products and services include a global newswire, regulatory news
distribution, investor targeting and contact management, and insider list
management. These are integrated within a cloud-based platform, the EQS
COCKPIT, to streamline the workflows of Investor Relations, Communications,
and Compliance professionals. The Group also offers an innovative
whistleblowing and case management software, website services, digital
reports, and webcasting solutions.
EQS Group was founded in 2000 in Munich, Germany. Today, the group employs
over 450 professionals around the globe and has offices in the world's key
financial markets.
Contact:
André Marques
CFO
Tel.: +49 89-21029833
Mobile: +49 175-5250009
Email.: [email protected]
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16.08.2018 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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Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: EQS Group AG
Karlstr. 47
80333 Munich
Germany
Phone: +49(0)89 210298-0
Fax: +49(0)89 210298-49
E-mail: [email protected]
Internet: www.eqs.com
ISIN: DE0005494165
WKN: 549416
Indices: Scale 30
Listed: Regulated Unofficial Market in Berlin, Dusseldorf,
Frankfurt (Scale), Munich (m:access), Stuttgart, Tradegate
Exchange
End of News DGAP News Service
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