DGAP-News: EQS Group AG increases revenue by 9 percent in the first quarter of 2019

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

EQS Group AG increases revenue by 9 percent in the first quarter of 2019

17.05.2019 / 08:00

The issuer is solely responsible for the content of this announcement.

EQS Group AG increases revenue by 9 percent in the first quarter of 2019

Beginning of the year slightly weaker than expected - Guidance confirmed

Munich - May 17, 2019

EQS Group AG (ISIN: DE0005494165) started the 2019 financial year with revenue growth of 9 percent, slightly weaker than expected. The Group generated EUR 8.54 million in revenues between January and March. New customer growth proceeded according to plan. EBITDA decreased to EUR-443 thousand. Consolidated net income amounted to EUR-1.889 million. Earnings per share were EUR-1.25.

In addition to stagnating regulatory news revenues and a lack of IPOs compared to the same period last year, lower revenue growth is also attributable to postponements of published annual accounts on our XML filing service to the month of April and thus into the second quarter. On the cost side, the chronological sequence of our investment program resulted in total expenditures in the first quarter of last year which were significantly lower than the annual full-year average. Operating expenses are expected to grow at a slower rate than revenue during the remainder of the year.

Segment development

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.
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