QSC AG : benefits from high cloud growth and posts consolidated net income of EUR 5.1 million for 2017

DGAP-News: QSC AG / Key word(s): Preliminary Results/Forecast QSC benefits from high cloud growth and posts consolidated net income of EUR 5.1 million for 2017 05.03.2018 / 07:30 The issuer is solely responsible for the content of this announcement. QSC benefits from high cloud growth and posts consolidated net income of EUR 5.1 million for 2017 - Preliminary figures for 2017: with revenues of EUR 357.9 million, EBITDA rises to EUR 38.3 million - Cloud as key growth driver: revenues here surge 54% to EUR 27.8 million - Free cash flow up 50% to EUR 12.6 million - Proposed dividend of 3 cents per share Cologne, 5 March 2018. The cloud and ICT service provider QSC can report consolidated net income of EUR 5.1 million for 2017 - thus regaining positive territory for the first time in four years. Other key earnings figures also rose, with EBITDA improving by EUR 1.2 million to EUR 38.3 million. Due to significantly lower depreciation and amortisation, EBIT even rose by EUR 20.2 million to EUR 7.1 million. This substantial improvement in the Company's earnings and financial strength is underlined by the 50 percent increase in its free cash flow to EUR 12.6 million. QSC's organisational restructuring and strategic alignment as digitiser to the German SME sector are visibly taking effect. The Company therefore plans to distribute a dividend of 3 cents per share once again. The progress made in 2017 is documented in particular by the 54% growth in Cloud revenues to EUR 27.8 million. In this, its newest segment, QSC also generated its first positive full-year earnings contribution. Other business fields developed largely as planned. Revenues in the TC business with corporate customers were slightly up while Consulting revenues fell slightly short of the previous year's figure. As expected, the Outsourcing business and the TC business with resellers reported lower revenues. Stricter regulation alone led to an earnings-neutral reduction in revenues by around EUR 15 million. Overall, QSC generated revenues of EUR 357.9 million in 2017, as against EUR 386.0 million in the previous year. Comments QSC's CEO Jürgen Hermann: "Our business performance in 2017 was consistent with our expectations. After three difficult years, QSC is now operating profitably once again and the Cloud business is noticeably gaining momentum." Other business fields, such as the TC business with corporate customers, have also shown positive signs. Adds Hermann: "With the verticalisation of our organisation and planned spin-off of the TC business, we are now increasing our effectiveness, particularly in our sales activities. This will produce new growth opportunities." 2018 outlook: QSC budgets free cash flow of more than EUR 10 million In the current financial year, QSC expects to generate revenues of between EUR 345 million and EUR 355 million, EBITDA of between EUR 35 million and EUR 40 million and a free cash flow figure of more than EUR 10 million. This forecast accounts for further substantial revenue growth in the Cloud segment and growth in the two forward-looking business fields of Consulting and TC with corporate customers. These developments will be opposed by a further contraction in the TC business with resellers, mainly due to market factors, as well as in the traditional Outsourcing business.   EUR million 2017 2016 Revenues 357.9 386.0 Cloud revenues 27.8 18.1 Consulting revenues 39.4 40.3 Outsourcing revenues 102.0 117.4 Telecommunications revenues 188.7 210.2 - of which with resellers 96.7 118.4 - of which with corporate customers 92.0 91.8 EBITDA 38.3 37.1 EBIT 7.1 -13.1 Consolidated net income 5.1 -25.1 Free cash flow 12.6 8.4 Capital expenditure 19.3 28.4 Number of employees at 31 December 1,342 1,360   Notes: QSC will publish its 2017 Annual Report on 29 March 2018. 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. Contact for enquiries: QSC AG Arne Thull Head of Investor Relations T [phone] F [phone] [e-mail] www.qsc.de 05.03.2018 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language:	English
Company:	QSC AG
	Mathias-Brüggen-Straße 55
	50829 Cologne
	Germany
Phone:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.qsc.de
ISIN:	DE0005137004
WKN:	513700
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

End of News	DGAP News Service

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