Focus on IP products drives leap in QSC net profit

German fixed network operator QS Communications (QSC) has announced its full year results for the year ended 31 December 2010, reporting that the company’s revenues rose 0.4% year-on-year to EUR422.1 million (USD580.3 million). IP-based products and services generated sales of EUR288.9 million in 2010 (68% of total turnover), an increase of 10.6% over 2009, offsetting a decline in classic network revenues, such as call-by-call and ADSL2+, which fell by EUR26.1 million to EUR133.2 million. QSC said that the transformation into an ICT service provider, as well as sustained strict cost discipline enabled earnings before interest, tax, depreciation and amortisation (EBITDA) to grow 1.6% year-on-year to EUR78.1 million, while operating profit (EBIT) more than doubled to EUR20.9 million. Net profit totalled EUR24.2 million in FY10, up from EUR5.5 million a year earlier. During the remainder of the current fiscal year, QSC will continue its transformation into an ICT services provider, and expects that this will further strengthen its profitability and financial position. In 2011 the company plans to increase free cash flow to EUR35-EUR45 million from EUR27.7 million a year earlier.