EQS Group (EQS)

Business description

EQS Group is a leading technology provider for digital IR, corporate communications and compliance, with more than 8,000 clients worldwide using its products and services to securely, efficiently and simultaneously fulfil complex national and international information obligations to the global investment community.

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2016A 26.1 4.2 2.4 96.1 79.1 23.6
2017A 30.4 2.3 0.8 16.4 463.4 53.8
2018E 36.5 1.6 (0.2) (6.5) N/A 62.3
2019E 43.5 4.2 2.4 93.1 81.6 26.5

Last updated on 24/05/2018

Investment summary

EQS’s Q118 report shows performance in line with expectations, with 13% top-line growth and higher investment pushing the group into an EBITDA loss. All is on track for a Q418 launch of the new COCKPIT web-based product platform and our forecasts for FY18e, FY19e and FY20e are unchanged. New KPIs and segmental reporting highlight a strong recurring revenue base and will clarify the growth dynamics of customer numbers and associated revenues. EQS’s markets remain attractive, with corporate obligations become more numerous and complex, underpinning the rating.

Last updated on 24/05/2018

Industry outlook

Gartner estimates the governance, risk and compliance segment at over $5bn, growing at a CAGR of over 13%. 2018 sees a number of tightened corporate compliance and disclosure requirements, including EU PRIIP regulations for Key Information Documents, an updated German corporate compliance code and the French SAPIN II anti-corruption regulation, as well as MiFID II. These all increase corporate administrative loads and carry heavy penalties for non-compliance, providing a positive backdrop for sales.

Last updated on 27/04/2018

Key management

Achim Weick, CEO
André Marques, CFO

Company address

Karlstr. 47
München
D-80333
Germany
+49 (89) 210 298 0
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