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30.04.2015

EQS Group AG achieves record revenue in 2014


EQS Group AG / Key word(s): Final Results/Forecast

2015-04-30 / 08:30


EQS Group AG achieves record revenue in 2014

Major progress in expansion into Asia

Munich, April 30, 2015

EQS Group AG (ISIN: DE0005494165) has again achieved record revenues in the financial year 2014. Group revenue rose 4% over the previous year to EUR16.39 million. Non-IFRS (adjusted) EBIT, before amortisation of the acquired customer assets
(EUR.28 million) and before acquisition costs (EUR.211 million), fell 3% to EUR3.311 million. Adjusted annual profit was EUR2.148 million (-5%). Adjusted earnings per share were EUR1.83 (-4%). Financial performance indicators are in line with the Guidance published at the start of 2014.

The company achieved revenue of EUR4.931 million (+14%) for the months of October-December 2014. Consolidated EBIT was EUR1.332 million (-3%), while consolidated net annual profit was EUR1.011 million (+2%). As a result, adjusted earnings per share were EUR.87 (+4%) in the fourth quarter of 2014.

Operative cash flow, which rose by 15% to EUR2.844 million (EUR2.476 million), also reflects EQS's strong performance in 2014. Equity ratio was 66% (78%) on December 31, 2014. Costs associated with the expansion strategy brought cash and cash equivalents down to EUR1.370 million (EUR2.98 million) at the balance sheet date.

Both the Executive and Supervisory Boards of EQS Group AG will propose to the General Meeting on June 12, 2015 a dividend payment of EUR.75 per share, as in the previous year.

Achim Weick, CEO of EQS Group AG, believes his company remains on a positive path to becoming a leading international provider of digital corporate communications with a focus on investor relations: "We are delighted at the results in financial year 2014, as we have made a number of significant steps forward along the track of global expansion. The acquisition of the TodayIR Group in Hong Kong gave us a boost, and not just in Asia: it serves as a source of motivation for us all to continue driving forward our successful strategy of internationalisation."

The Regulatory Information & News segment benefited from a 4% increase in news volume over the last year. The base effect caused by the takeover of the euro adhoc customer base precipitated a 23% rise in news volume in the first quarter. While the delisting of companies from the regulated market segments had adverse effects on the news volume over the entire year, sales volumes within the segment nevertheless experienced disproportionate growth compared to news volume, rising by 6% to EUR5.974 million (EUR5.620). The adjusted segment EBIT fell by 2% to EUR1.647, due mainly to investment in geographic expansion, the continued development of EQS's COCKPIT and its dissemination networks.

Sales revenue in the Products & Services segment remained unchanged at EUR11.145 million (EUR11.146 million). However, the submission service of the Federal Gazette (Bundesanzeiger) as well as the Websites & Platforms segment experienced substantial growth. In contrast, revenue in media business with issuers of medium-sized enterprise bonds slumped significantly. Moreover, the de- and downlistings had a negative effect on the segment's performance. Adjusted EBIT fell by 4% to EUR1.665 million (EUR1.735 million).

Geographic expansion is progressing rapidly. The most important event over the past year was the acquisition of the digital investor relations and news provider TodayIR Holdings Limited (TodayIR). The organisation has approximately 50 employees at its headquarters in Hong Kong and its branches in Singapore, Taiwan and Shenzhen, representing the largest growth in human capital in EQS Group AG company history. This acquisition propels EQS Asia into a leading market position in Hong Kong, Asia's largest equity market. Moreover, the takeover provides an ideal starting point to move into the capital markets in Singapore and Taiwan which are also experiencing strong growth. Yet it is the 'Shanghai-Hong Kong Stock Connect' programme, with which China is opening its doors to international investors that offers the greatest future potential for EQS in Asia.

Our launch of our development center in India further strengthens our Asian business. EQS Web Technologies Pvt. Ltd. in Kochi will act mainly as a provider of high quality development services for our locations in Asia.

EQS Group's other foreign companies also proved strong in 2014. The Russian subsidiary benefited from its position as market leader and was able to achieve double-digit growth despite a difficult environment and has not been directly affected by the sanctions. EQS Switzerland also continues to operate profitably, achieving further revenue growth last year.

Forecast: sustained growth in 2015

Within the framework of the International Growth Strategy, the Executive Board expects 2015 to again feature double-digit revenue growth of between 10%-15% to EUR18-EUR18.8 million. At the same time, the financial year 2015 will see further start-up and expansion investments totalling approximately EUR1 million, which will lead to a moderate decline in non-IFRS EBIT of between 5%-10% to EUR3 - EUR3.15 million.

We expect 2016 to see new records in revenue and adjusted EBIT.

The Executive Board will explain the business performance in a telephone conference today from 11 AM (CEST). The conference will also be streamed live online: www.eqs.com.

Key indicators (IFRS)01/01 -01/01-+/-
 31.12.201431.12.2013 
    
Revenue (EUR million)16.39015.8294%
Non-IFRS* EBIT (EUR million)3.3113.418-3%
EBIT (EUR million)2.8203.278-14%
Non-IFRS* Net profit (EUR million)2.1482.269-5%
Net profit (EUR million)1.8412.182-16%
Non-IFRS* earnings per share (EUR)1.831.91-4%
Earnings per share (EUR)1.571.83-14%
Operating cash flow (EUR million)2.8442.47615%
Cash and Equivalents (EUR million)1.3702.980-54%
Personnel (average for the period)14910542%
 

*Non-IFRS performance indicators before amortisation on acquired customer assets & acquisition costs

Other information:

The figures for the fourth quarter of 2014 are unaudited. The annual figures for 2014 are audited.

The complete Annual Report is published digitally and is available for download from the Investor Relations section at www.eqs.com. An interactive version is also available at the same web address.

You can receive quick company communication from EQS Group AG for free on your mobile device. This service is also available using the DGAP News App (http://newsapp.dgap.de/) for your AppleWatch or by text message and subsequent download:

You can register to receive this information in the Investor Relations section at www.eqs.com.

About the EQS Group:

The EQS Group is a Munich-headquartered leading international provider of digital corporate communications.

Since its founding in 2000, the EQS Group has grown to be a leading global provider of digital solutions for investor relations and corporate communications. Its solutions and services enable over 7,000 companies worldwide to fulfill complex domestic and international corporate information requirements securely, timely and efficiently.

EQS Investor Relations and EQS Corporate Communications disseminate financial and corporate news, develop corporate websites and apps, produce online financial as well as sustainability reports, and execute audio and video broadcasts. EQS Financial Markets & Media and ARIVA.DE (25.44%) are active in financial marketing, data and content delivery as well as the development of financial portals. Through its DGAP service, the EQS Group is the institution by which companies fulfill mandatory regulatory news dissemination requirements.

The EQS Group is headquartered in Munich, with a further domestic office in Hamburg. The international growth strategy has led to subsidiaries in Zurich, London, Moscow, Hong Kong, Shenzhen, Singapore, Taipei, and Kochi. EQS Group currently has over 170 employees.





2015-04-30 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.
Media archive at www.dgap-medientreff.de and www.dgap.de



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