News

EQS Group AG continues to grow in HY1 2019

New CRM and mailing COCKPIT modules ready in the second half of the year

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.


Segment
Development


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)���

HY1 2019

HY1 2018

+/-

Revenues (in
� mln.)

18.703

17.131

+9%

EBITDA* (in �
mln.)

0.150

-0.05

>+100%

EBITDA
adjusted for IFRS 16 (in � mln.)

-0.763

-0.05

>-100%

EBIT (in � mln.)

-2.023

-1.094

-85%

Group Earnings (in � mln.)

-2.450

0.148

>-100%

Earnings per Share (�)

-1.64

0.17

>-100%

Operating
Cash Flow* (in � mln.)

0.760

1.199

-37%

Liquid Funds (in � mln.)

1.280

1.207

+6%

Employees
(average of the reporting period)

468

429

+9%

*Limited comparability due to new IFRS Accounting for Leases (IFRS 16)
as of Jan. 1, 2019

More information:

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.


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