QSC AG / Half Year Results
11.08.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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QSC again raises guidance for 2008 / Preliminary numbers for Q2 2008
- Revenues advance by 26 percent to 100.2 million
- EBITDA up by 30 percent to 14.2 million
- QSC again raises guidance:
- Revenues of more than 405 million anticipated
- EBITDA of more than 60 million anticipated
Cologne, August 11, 2008. QSC AG sustained its strong and profitable growth
in the second quarter of 2008, growing its revenues by 26 percent to
100.2 million according to preliminary results as opposed to 79.6 million
for the same quarter the year before.
The company posted its strongest growth in the Wholesale/Reseller segment
where revenues surged by 69 percent to 56.6 million. QSC continued to
benefit from the high number of new unbundled local loops (ULL); in the
second quarter of 2008, the company connected a total of 93,600 new DSL
lines, increasing the number of connected local loops by 25 percent to
467,100. Whilst revenues in the Products segment declined by 17 percent to
25.3 million due to sustained price pressure in conventional voice
telephony, in particular among residential customers, the growing demand
for IP-VPN solutions and network-related services in the Managed Services
segment fueled a 17-percent rise in revenues to 18.3 million.
Given this strong revenue growth and the continued benefits from synergies
stemming from the Broadnet merger, QSC increased its preliminary EBITDA by
30 percent to 14.2 million, as opposed to 10.9 million the year before.
The companys EBITDA margin rose by two percentage points to 14 percent
within the space of a single quarter.
Return to the profitability zone
Strong customer growth, along with corresponding depreciation on
capitalized customer connections and the network expansion project,
increased depreciation expense to 15.0 million in the second quarter of
2008, as opposed to 10.4 million for the corresponding quarter the year
before. The preliminary companys net loss amounted to -1.5 million, as
opposed to net income of 0.5 million in the second quarter of 2007; over
the first quarter of 2008, the net result improved by 2.6 million. With a
view to the companys very good development in the second quarter of 2008,
QSC Chief Executive Officer Dr. Bernd Schlobohm states: 'QSC will be
returning to the profitability zone in the second half of the year.'
Network expansion project concluded
Capital expenditures in the second quarter of 2008 totaled 19.7 million,
as opposed to 18.7 million for the same quarter the year before. Capital
expenditures declined by 8.9 million from its peak in the first quarter
of 2008, as QSC had concluded its extensive network expansion project
during the second quarter. The percentage of customer-related capital
expenditures amounted to 60 percent in the second quarter of 2008, with QSC
swiftly invoicing some 90 percent of these capital expenditures to the
respective customers. With liquidity totalling 63.0 million as of June
30, 2008, QSC sees itself well financed for its anticipated growth.
Guidance raised
Given the very good course of business during the first half of 2008, QSC
is again raising the guidance for 2008, which it had already increased on
May 15, 2008: The company now anticipates revenues of more than 405
million and an EBITDA of more than 60 million. The company had previously
been planning on revenues at the upper end of a 385 to 405 million
range and an EBITDA at the upper end of a 50 to 60 million range. The
company continues to aim for a break-even net result. Dr. Schlobohm: 'The
very good development of our operating business, the swift integration of
Broadnet and the conclusion of the network expansion project give me every
reason to be optimistic about the coming quarters.'
Queries to:
QSC AG
Arne Thull
Investor Relations
Fon: +49-221-6698-724
Fax: +49-221-6698-009
E-mail: invest@qsc.de
Notes:
From August 20, 2008, the 6-months report will be available under
http://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.
DGAP 11.08.2008
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Language: English
Issuer: QSC AG Mathias-Brüggen-Straße 55
50829 Köln
Deutschland
Phone: +49 (0)221 66 98-112
Fax: +49 (0)221 66 98-009
E-mail: invest@qsc.de
Internet: www.qsc.de
ISIN: DE0005137004
WKN: 513700
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf
End of News DGAP News-Service
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DGAP-News: QSC again raises guidance for 2008 / Preliminary numbers for Q2 2008
| Source: EQS Group AG