German fixed network operator QS Communications (QSC) has announced it generated revenue of EUR420.5 million (USD565.7 million) in the year ended 31 December 2009, up from EUR413.3 million a year earlier. The company attributes the rise to placing a greater focus on lines of business that offer a sufficiently high contribution margin, while taking a cautious attitude towards markets characterised by price competition. QSC’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose from EUR67.3 million in 2008 to EUR76.9 million in full year 2009, while earnings before interest and tax (EBIT) increased by EUR3.6 million year-on-year to reach EUR9.7 million at 31 December 2009. Full year net income stood at EUR5.5 million in 2009, up from EUR0.8million a year earlier. Following the conclusion of its network expansion project, QSC reduced its capital expenditures to EUR42.2 million in 2009, compared to EUR91.4 million the year before. EUR10 million of 2009 CAPEX was attributable to ongoing replacement investments in QSC’s network as well as evolving its nationwide next generation network (NGN).
QSC will continue to focus on strengthening its financial position and profitability in 2010 and plans to improve free cash flow to over EUR22 million and expects further rises in revenue, EBITDA and net income. ‘2010 will clearly see QSC evolve from a network operator to a service provider. In the medium term, this transformation will open up new potential to our company for profitable growth,’ commented QSC CEO Bernd Schlobohm, adding, ‘With our IP-based NGN, we possess an extremely efficient platform for making the most of this convergence.’