EQS Group AG on course for the first half of 2017

Corporate News

EQS Group AG on course for the first half of 2017 Revenues grow by 45%

Munich - August 14, 2017

EQS Group AG (ISIN: DE0005494165) has continued growing in the first half of 2017. The Group generated revenues of EUR 15.01 million in the first six months of the fiscal year, representing a 45% increase over the same period last year. EBIT before acquisition costs, purchase price allocation and scheduled amortization of the acquired customer bases (non-IFRS) declined slightly by 3% to EUR 912 thousand. Adjusted Group net profit amounted to EUR -37 thousand. Adjusted earnings per share are EUR -0.03. The following picture has emerged for the second quarter: EUR 8.12 million in revenues (+42%), adjusted EBIT decline of 25% to EUR 581 thousand, and adjusted Group net profit of EUR -11 thousand. Adjusted earnings per share for the April-June period amounted to EUR -0.01 (previous year: EUR 0.29). The significant increase in revenues is mainly attributable to a rise in sales in Germany (+60% to EUR 11.85 million), particularly the consolidated sales revenues of the majority stake in ARIVA.DE AG. Sales increased by over 30% or EUR 3.5 million as companies prepare for the obligatory adoption of basic information sheets for financial products mandated by the PRIIP regulation.

EQS Group AG also increased organic sales revenues by 17%. The decisive factors for this increase were the implementation of the European Market Abuse Regulation, the associated expansion of ad-hoc obligations to a considerably larger group of issuers, and more comprehensive insider rules. EQS also won numerous new customers for its INSIDER MANAGER cloud software. Achim Weick, founder and CEO of EQS Group AG: "Our INSIDER MANAGER cloud software has been a great success and demonstrates the enormous growth potential of cloud-based compliance solutions. We are also currently preparing the market launch of our innovative whistleblowing solution SAFE CHANNEL. EQS customers value our know-how and expect us to provide additional integrated modules to ensure compliance with national and international legislation. In the coming months, we will be actively expanding the governance, risk & compliance segment, both nationally and internationally."

Foreign business continued to grow in the first half of 2017. Sales revenues rose by 7% to EUR 3.16 million. The share of foreign sales in consolidated sales declined from 28% to 21% as a direct result of the initial consolidation of ARIVA.DE AG. Our Swiss subsidiary increased sales in the first six months by 5% to EUR 1.17 million. Our focus in Asia this year is achieving break even. In the first half of the year, our operating result was virtually balanced, with an 11% decline in sales to EUR 1.14 million. The largest percentage growth in sales was achieved by our UK and Russia companies, with the UK posting 50% growth (EUR 225 thousand) and Russia with 36% growth (EUR 533 thousand) as well as a double-digit EBIT margin.

Unchanged outlook As result of EQS Group's international growth strategy, the Executive Board of EQS Group expects double-digit revenue growth in 2017, between 20% and 25%, amounting to EUR 31.2 million to EUR 32.5 million. Adjusted EBIT is expected to increase by 10% to 20%, amounting to EUR 3.6 million to EUR 3.9 million.

Management will present the results at 11:00 am (CET) in today's telephone conference, broadcasted live online at www.eqs.com.

* Non-IFRS key figures before amortization of acquired customer bases, purchase price allocation, and acquisition expenses

** Prior-year figures adjusted. We refer to item 2. "Significant accounting and valuation methods" (2.4 Changes in the previous year's figures) in the notes to the consolidated financial statements as of Dec. 31, 2016 *** as of Dec. 31, 2016

More information:

The figures for 6M 2017 are unaudited.

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About EQS Group

EQS Group is a leading international technology provider for Digital Investor Relations, Corporate Communications and Compliance. More than 8,000 companies worldwide trust EQS's products and services to securely, efficiently, and simultaneously fulfil complex national and international disclosure and compliance requirements to the global investment community.

The EQS COCKPIT, a cloud-based IR workflow platform, digitally maps the work processes of IR Officers, communicates with the company's website, and distributes company releases via one of the most important financial newswires. With additional products such as websites, IR tools, digital reports, and webcasting solutions, EQS Group is a digital single source provider.

EQS Group was founded in Munich, Germany in 2000 and has developed from a start-up to an international group with offices in the world's key financial markets. The group employs more than 350 professionals globally

Contact:

André Marques

Head of Investor Relations

Tel.: +49 89-21029833

Mobile: +49 175-5250009

Email.:andre.marques@eqs.com