MUNICH, GERMANY - EQS - 16 August 2019 - EQS Group AG (ISIN: DE0005494165) continues its positive corporate development in the first half of 2019. The Group generated revenues of EUR 18.70 million in the first six months of the financial year, an increase of 9% over the same period the previous year. EBITDA increased to EUR 150,000. Consolidated net profit amounted to EUR -2.45 million. Earnings per share are EUR-1.64.
The following picture emerges for the second quarter: revenue amounts to EUR 10.17 million (+9%), EBITDA increased by 134% to EUR 594,000, and consolidated net income amounts to EUR -561,000. Earnings per share are EUR -0.39 in the period from April to June (previous year: EUR 0.41).
Sales growth in the first half of the year was slightly lower than expected. This is a consequence of a weakening economy and a corresponding lack of IPOs, revenue shifts in XML filings, and delays in the completion of single CRM- and mailing functions in the new COCKPIT. On the cost side, total expenses in the second quarter decreased disproportionately to revenue, as planned, as a result of the chronological sequence of the investment program. This trend will continue in the coming quarters.
In the Compliance segment, revenue increased by 15% to EUR 9.61 million (EUR 8.35 million) in the first half of the year. The number of Large Cap customers rose this quarter by 36 to 1,206, LEI customers increased by 513 to 34,093, and XML submissions customers rose by 105 to 4,249 on an annualized basis. Revenues in the Investor Relations segment increased to EUR 9.09 million, up 4% from the previous year (EUR 8.78 million), while the number of customers increased by 20 for a total of 2,103.
EQS Group AG is achieving the goal it set in September 2017 to expand its core business around the adjacent Corporate Compliance segment and to exclusively develop cloud-based solutions. In doing so, the Group has launched an investment offensive to expand itself into a technology company. This undertaking has led to a temporary burden on earnings. EQS successfully launched the first version of its new COCKPIT in the fourth quarter of 2018. Since then, 65 customers have shifted to the new COCKPIT.
Achim Weick, Founder and CEO of EQS Group AG: "We have made real strides in the first half of the year and are confident that revenue growth will accelerate as we begin migrating the majority of our customers to the new COCKPIT from September on. This will lead to a sustainable expansion of subscription revenues."
Annual recurring revenues at the Group level are at 78% in the second quarter. For the large caps in Germany, that number remains nearly unchanged at 82%. These figures are based on a customer basis of 1,202 Large Cap customers.
Updated outlook following sale of stake in ARIVA.DE AG
EQS Group AG has sold its entire stake in ARIVA.DE AG effective July 1, 2019. The decision to do so was based on the Group's strategic focus on Corporate Compliance and Investor Relations. The deal closed in mid-July (deconsolidation as of July 1, 2019) and the Executive Board now plans a 4%-9% increase in revenues from between EUR 37.5 million and EUR 39.5 million. Due to lower other operating expenses of approximately EUR 1.8 million as a result of the effects of IFRS 16 (Amendment to IFRS accounting guidelines for leases), we expect an EBITDA of between EUR 2.8 million and EUR 3.8 million. Adjusted for the effects of IFRS 16, EBITDA is still expected to be between EUR 1.0 million and EUR 2.0 million. We expect a volume of EUR 4.0 million for the newly introduced New ARR key figure, which reflects newly contracted annual recurring sales volume. In addition, the number of new customers (Large Caps) is to increase by 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.
Key figures (IFRS)
Revenues (in € mln.)
EBITDA* (in € mln.)
EBITDA adjusted for IFRS 16 (in € mln.)
EBIT (in € mln.)
Group Earnings (in € mln.)
Earnings per Share (€)
Operating Cash Flow* (in € mln.)
Liquid Funds (in € mln.)
Employees (average of the reporting period)
*Limited comparability due to new IFRS Accounting for Leases (IFRS 16) as of Jan. 1, 2019
The figures for HY1 2019 are unaudited.
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About EQS Group
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 over 350 professionals and has offices in the world's key financial markets.