QSC announces preliminary results for 2007

14 Feb 2008

German broadband provider and network operate QS Communications (QSC) has reported its preliminary results for the year ended 31 December 2007. Revenues increased by 28% year-on-year to EUR335.2 million (USD488.5 million) from EUR262.5 million in 2006. In the final quarter of 2007 alone, revenues rose by 15% quarter-on-quarter, reaching EUR95.6 million, mainly attributable to a strong increase in wholesale business, where there was a notable increase in the provision of unbundled local loops. In 2007, QSC posted its strongest revenue growth in the Wholesale/Reseller segment, where sales rose by 87% year-on-year to EUR122.3 million. In the Large Account segment the figure increased by 17% y-o-y to EUR76.6 million, while revenues with Business Customers were up by 12% to EUR84.7 million.

Network expenses rose by 26% in 2007 to EUR227.2 million (2006: EUR180.4 million). This increase was largely due to expansion, driven by Plusnet, the joint venture with Tele2 Germany, and one-offs from the integration of the network of Broadnet, which was merged with QSC on 31 October 2007. CAPEX rose to EUR125.5 million in 2007, from EUR40.1 million in 2006. Nevertheless, QSC was able to improve its gross profit to EUR108.0 million in 2007, compared to EUR82.1 million the year before. EBITDA rose by 65% year-on-year to EUR34.9 million.

QSC’s full, audited annual report will be available on 31 March 2008.

Germany, q.beyond (formerly QSC)