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16.08.2018

EQS Group AG reports double-digit revenue growth in the first half of 2018

DGAP-News: EQS Group AG / Key word(s): Half Year Results

16.08.2018 / 08:00
The issuer is solely responsible for the content of this announcement.


EQS Group AG reports double-digit revenue growth in the first half of 2018
Higher investment volume leads to lower EBITDA guidance

Munich - August 16, 2018

EQS Group AG (ISIN: DE0005494165) continues its positive corporate development in the first half of 2018. The Group generated revenues of EUR17.131 million in the first six months of the financial year, an increase of 14% over the same period in the previous year. EBITDA decreased to -EUR50 thousand. Consolidated net income amounted to EUR148 thousand. Earnings per share amount to EUR0.17.

For the second quarter, the following picture emerges for EQS Group: sales amounted to EUR9.314 million (+15%), EBITDA fell by 78% down to EUR255 thousand, and consolidated net income amounted to EUR586 thousand. Earnings per share for the period of April to June were EUR0.41 (previous year: -EUR0.05).

The strategic expansion of the existing Investor Relations business area to include the adjacent Governance, Risk & Compliance (GRC) business area requires new segment reporting. There is a distinction between the two markets of Investor Relations and Compliance. The Investor Relations segment includes financial and corporate communications products which include: News, Portals, Websites, Webcasts, and Media. The Compliance segment includes all products required to fulfill legal or regulatory obligations.

Segment performance

In the Investor Relations segment, the number of clients increased by 47, up to a total of 1,977. Sales remained close to the previous year's level at EUR8.78 million (EUR8.66 million). In the Compliance segment, sales were significantly higher, with a 31% increase in revenue, amounting to EUR8.35 million (EUR6.35 million). The number of Large Cap clients increased by 83, up to a total of 1,022, the number of XML clients grew to 180, for a total of 4,132, and LEI clients increased by 5,284, for a total of 15,205.

Investment volume increased

EQS Group AG has implemented its September 2017 decision to expand its core business through the adjoining Governance, Risk & Compliance (GRC) business unit, and to exclusively develop cloud-based solutions. This move has been accompanied by an investment offensive to expand the Group into a technology company. As a result, earnings have been burdened temporarily. Approximately 70 specialists are currently working on completing the new COCKPIT, and product development is proceeding according to plan. Investment volume increased, in particular to facilitate recruiting and address additional required resources. The first version of the new COCKPIT will be introduced in the fourth quarter of 2018.

Achim Weick, founder and CEO of EQS Group AG: "Our new COCKPIT will be another milestone for both our customers and our company. Although the job market for software developers is challenging, we are sticking to our schedule. Beginning in 2019, we expect an increase in subscription revenues and a further increase in our annually recurring revenues."

With the development of the Group into a technology company, and the increasing importance of Software-as-a-Service (SaaS) revenues, EQS Group AG introduced new business performance indicators at the beginning of this fiscal year. These are largely focused on annually recurring revenues in order to clarify revenue quality and scaling potential. The number of new and total customers in reporting periods, as well as average revenue per customer per quarter (QRPC), are both decisive factors for estimating growth potential.

Annually recurring revenues at the Group level in Q2 are 82%. For the Large Cap client group in Germany, this level is higher at 86%, a 10% increase. These figures are based on a client base of 1,115 clients. The QRPC was EUR3,100. In some foreign markets, the QRPC is lower, while other key figures remain comparable to those of Germany.

Outlook: revenue growth progressing according to plan with lower EBITDA

For the 2018 financial year, the Executive Board plans a 19% - 24% increase in revenues (EUR36 million - EUR37.6 million). Due to higher investments in recruiting and additional development resources, the Executive Board now expects a positive EBITDA of up to EUR1 million (previously: between EUR1.5 million and EUR2.1 million).

The board will discuss business results beginning at 11:00 am (CEST) on today's conference call, which will be broadcasted live online at: www.eqs.com.

Key figures (IFRS) 6M 20186M 2017+/-
Revenues (in EUR mn)17.13115.01414%
EBITDA (in EUR mn)-0.051.552>-100%
EBIT (in EUR mn)-1.0940.563>-100%
Group Earnings (in EUR mn)0.148-0.176>100%
Earnings per Share (EUR)0.17-0.13>100%
Operating Cash Flow (in EUR mn)1.199-0.439>100%
Liquid Funds (in EUR mn)1.2076.374*-81%
Employees (average of the reporting period)42934026%
 

* as of Dec. 31, 2017

More information:

The figures for 6M 2018 are unaudited.

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EQS Group is a leading international technology provider for Investor Relations, Corporate Communications, and Corporate Compliance. Several thousand companies worldwide use EQS Group's offerings to fulfill complex national and international disclosure obligations, to minimize risk, and to reach stakeholders.

EQS Group is a digital single-source provider for global teams. EQS Group's products and services include a global newswire, regulatory news distribution, investor targeting and contact management, and insider list management. These are integrated within a cloud-based platform, the EQS COCKPIT, to streamline the workflows of Investor Relations, Communications, and Compliance professionals. The Group also offers an innovative whistleblowing and case management software, website services, digital reports, and webcasting solutions.

EQS Group was founded in 2000 in Munich, Germany. Today, the group employs over 450 professionals around the globe and has offices in the world's key financial markets.

Contact:

André Marques

CFO

Tel.: +49 89-21029833

Mobile: +49 175-5250009

Email.:andre.marques@eqs.com



16.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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