DGAP-News: EQS Group AG / Key word(s): Quarter Results
EQS Group AG increases revenue by 9 percent in the first quarter of 2019
Munich - May 17, 2019
In the Compliance segment, first-quarter revenue increased by 7 percent to EUR 4.10 million (EUR 3.82 million). The number of large cap customers increased by 28 to 1,170 customers compared to the previous quarter, as well as by 193 to 4,363 customers in XML Filing, and by 3,814 to 33,580 for the LEI issuing service. In the Investor Relations segment, revenues increased to EUR 4.44 million, up 11 percent on the same period in the previous year (EUR 4.00 million), while the number of customers increased by 45 to a total of 2,083.
In September 2017, EQS Group AG made the pivotal decision to expand its core business to the adjacent Governance, Risk & Compliance (GRC) business sector and to exclusively develop cloud-based solutions for this purpose. This move was marked by an investment offensive to expand the Group into a technology company. As a result, earnings have been temporarily burdened. Product development is proceeding according to plan. The first version of the new COCKPIT was successfully launched in the fourth quarter of 2018. Since then, 49 customers have already migrated to the new COCKPIT.
Recurring revenue at the Group level was 76 percent in the first quarter. For large cap customers in Germany, the level is already at 81 percent. These percentages are derived from a base of 1,187 customers.
Outlook confirmed: Further growth in 2019
For the 2019 financial year, the Management Board is planning a revenue increase of 15 percent to 20 percent to between EUR 41.5 million and EUR 43.5 million. We now expect an EBITDA of between EUR 2.8 million and EUR 3.8 million due to lower other operating expenses of around EUR 1.8 million, an effect of IFRS 16 (Amendment to IFRS Accounting Policies for leases). Adjusted for the effects of IFRS 16, EBITDA is expected to be between EUR 1.0 million and EUR 2.0 million. We anticipate a volume of at least EUR 4.0 million for the newly introduced New ARR key figure, which indicates new contracts for recurring business volume. In addition, the number of customers (Large Caps) is set to increase to up to 400.
The Executive Board will discuss the results in today's telephone conference from 11.00 a.m. (CEST). This will be broadcast live online on www.eqs.com.
*Limited comparability due to new IFRS Accounting for Leases (IFRS 16) as of Jan. 1, 2019
The figures for Q1 2019 are unaudited.
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EQS Group is a leading international provider of regulatory technology (RegTech) in the fields of corporate compliance and investor relations. In working with EQS Group, thousands of companies worldwide inspire trust by fulfilling complex national and international disclosure obligations, minimizing risks and communicating transparently with stakeholders.
EQS Group's products are pooled in the cloud-based software EQS COCKPIT. They ensure the professional control of compliance workflows in the fields of whistleblower protection and case management, policy management, insider list management and disclosure obligations. In addition, listed companies benefit from a global newswire, investor targeting and contact management, IR websites, digital reports and webcasts for efficient and secure investor communications.
EQS Group was founded in 2000 in Munich, Germany. Today the group employs around 500 professionals and has offices in the world's key financial markets.
Tel.: +49 89-21029833
Mobile: +49 175-5250009
|Company:||EQS Group AG|
|Listed:||Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Munich (m:access), Stuttgart, Tradegate Exchange|
|EQS News ID:||812673|
|End of News||DGAP News Service|