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Thursday 15 November, 2018

EQS Group AG

EQS Group AG gains momentum in Q3

RNS Number : 4499H
EQS Group AG
15 November 2018
 

EQS Group AG gains momentum in Q3

Sales growth accelerates - Guidance affirmed

 

Munich - 15 November 2018

 

EQS Group AG (ISIN: DE0005494165) has maintained its positive corporate development in the first nine months of 2018, generating strong sales momentum in Q3. Between July and September, the Group generated €8.77 million in revenues, a 25% gain over the same period the year prior. As expected, EBITDA decreased to -€622 thousand due to high investments. Consolidated net income totaled -€2.43 million. Earnings per share were -€1.70.

 

In the first nine months of 2018, the following pictures has emerged: sales totaled €25.90 million (+18%), EBITDA has decreased to -€672 thousand and consolidated net income was -€2.29 million. Earnings per share totalled -€1.59 (previous year: -€0.54).

 

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 now a distinction between the two markets of Investor Relations and Compliance.

 

 

Segment Performance

 

In the Investor Relations segment, the number of clients increased in Q3 by 45, up to a total of 2,022. Sales rose by 2% to €13.36 million (€13.12 million) in the first nine months of 2018. In the Compliance segment, sales were significantly higher, with a 41% increase in revenue, amounting to €12.54 million (€8.91 million). The number of Large Cap clients increased by 70, up to a total of 1,092, the number of XML clients grew to 270, for a total of 4,149, and LEI clients increased by 4,598, for a total of 19,803.

 

 

Product Development on course

 

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 new COCKPIT is expected to be launched shortly.

 

Achim Weick, founder and CEO of EQS Group AG: "Our new COCKPIT will go live soon and will set new standards. Customer feedback from pre-marketing has been very positive. In addition, we are pleased with our sales momentum in the third quarter, and expect revenues to rise strongly in the final quarter, as well. "

 

Annually recurring revenues at the Group level in Q3 are 81%. For the Large Cap client group in Germany, this level is higher at 85%. These figures are based on a client base of 1,143 customers. The quarterly revenue per customer (QRPC) was €2,850.

 

Outlook: Guidance confirmed

 

For the 2018 financial year, the Executive Board expects a revenue increase at the lower end of the guidance, in the range of 19-24%, or between €36 - 37.6 million. Investments total approximately €3.8 million. The Management Board expects a positive EBITDA of up to €1 million.

 

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

 

 

Key figures (IFRS)  

9M 2018

9M 2017

+/-

Revenues (in € mn)

25.898

22.029

18%

EBITDA (in € mn)

-.672

1.940

>-100%

EBIT (in € mn)

-2.375

.464

>-100%

Group Earnings (in € mn)

-2.287

-.703

>100%

Earnings per Share (€)

-1.59

-0.54

>-100%

Operating Cash Flow (in € mn)

2.533*

-.126

>100%

Liquid Funds (in € mn)

1.286

.273

>100%

Employees (average of the reporting period)

439

350

25%

 

* Own costs capitalized considered in the Cash Flow from investment activities

 

 

More information:

 

The figures for 9M 2018 are unaudited.

Receive news from EQS Group AG free of charge on your mobile device: via DGAP News App directly to your AppleWatch or iPhone (http://newsapp.dgap.de/).

 

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.: [email protected]

 

 

 

 

 

 


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