German fixed network operator QS Communications (QSC) has reported its annual results for the year ended 31 December 2008. The company grew its revenues by 23% to EUR413.3 million (USD545.9 million) in 2008, up from EUR335.2 million the previous year. Earnings before interest, tax, depreciation and amortisation (EBITDA) nearly doubled to EUR67.3 million, compared to EUR34.9 million in 2007, representing a 2008 EBITDA margin of 16%, up six percentage points year-on-year. QSC recorded a net profit of EUR800,000, compared to a net loss of EUR11.7 million in 2007. The company attributed its improved profitability in 2008 to synergies following the merger with Broadnet in 2007, combined with sustained cost discipline and strong growth. CEO of QSC, Bernd Schlobohm, commented: ‘In spite of the onset of the recession, 2008 was a highly successful year for QSC. Building upon this, we intend to remain on our success course during the current fiscal year, while increasing our financial strength and profitability.’
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 wholesale ADSL2+ residential business slowed during the year in the face of saturation of the market and stronger competition.
The company anticipates a positive free cash flow of more than EUR10 million in 2009, as well as an EBITDA of between EUR68 and EUR78 million, and planned annual revenues of between EUR420 and EUR440 million.