Cologne-based QS Communications (QSC) has announced its full-year preliminary results, recording an increase in revenues by 23% to EUR413.3 million (USD529.5 million), up from EUR335.2 million a year earlier. The company’s 2008 earnings before interest, tax, depreciation and amortisation (EBITDA) nearly doubled to EUR67.3 million, compared to EUR34.9 million in 2007, which QSC attributed to the ability to achieve synergies quickly from its merger with Broadnet in 2007 and ‘sustained cost discipline throughout the organisation.’ The company also recorded a net income of EUR0.8 million, as opposed to a net loss of EUR12.7 million the year earlier. Completion of a network expansion project by mid-2008 led to a significant decline in total capital expenditure in 2008; totaling EU91.4 million, down from EUR122.9 million in 2007.
The company announced that its strong growth was fuelled by the development of business in its Wholsesale/Resellers segment; overall QSC connected 306,900 DSL business lines in 2008, bringing its total to 555,700. Although the company does not release residential subscriber figures, it announced that the growth of its wholsesale ADSL2+ residential business slowed during the year in the face of saturation of the market and stronger competition.
QSC maintains a positive outlook for 2009, despite the current economic climate. The company forecasts a cash flow of more than USD10 million, along with EBITDA of between EUR68 million and EUR78 million. Revenues are projected to reach between USD420 million and USD440 million, and the company expects to earn a sustained net profit. In what it calls ‘a difficult market environment’, the company will focus on improving revenue quality, giving priority to higher profitability over higher revenues.