QSC FY10 Profit Surges; Plans Maiden Dividend

German telecommunications provider QSC AG reported Monday a significant growth in profit for fiscal 2010, mainly driven by higher earnings with IP-based products and services as so then as lower depreciation expense. QSC added that it plans to distribute its first ever dividend for fiscal 2011.

In the year, earnings with IP-based products and services advanced to 288.9 million euros from prior year's 261.2 million euros. QSC noted that it was already generating 68 percent of its earnings in these forward-looking lines of business in the year. The company pointed out that the share of IP-based earnings rose to 72 percent in the fourth quarter from 65 percent in the first quarter of 2010.

Meanwhile, annual earnings with the classical products of a network operator, just as Call by Call and ADSL2+, declined by 26.1 million euros to 133.2 million euros in 2010.

Chief Executive Officer Dr. Bernd Schlobohm stated, "In 2011 the focus will continue to be on evolving the company into a provider of ICT services and in this way on concentrating on higher-margin IP-based earnings. Medium-term, we will be able to tap into attractive growth and profitability potential through new offerings just as Housing and Hosting, as so then as an innovative Cloud Computing platform."