OREANDA-NEWS. EQS Group AG (ISIN: DE0005494165) ended the 2016 financial year with a significant jump in sales and achieved a new revenue record for the seventh consecutive year. The Group achieved a 42% increase in sales, up to €26.06 million. EBIT before one-off acquisition costs, purchase price allocation and scheduled depreciation of acquired customer bases (non-IFRS) rose by 10% to €3.28 million.  Adjusted net income for the year amounted to €1.44 million. Adjusted earnings per share were to €0.96. 

For the period October - December, the Group generated sales of €8.04 million (+54%). Adjusted EBIT decreased by 7% to €1.31 million. The adjusted group net profit amounted to €929,000 (+69%), resulting in an adjusted earnings per share of  €0.53 (+ 13%) for the fourth quarter of 2016. 

The EQS Group AG Management and Supervisory Boards will propose a dividend payment of €0.75 per share at the Annual General Meeting on May 17, 2017, as they have in previous years. 

Achim Weick, founder and CEO of EQS Group AG explains, "2016 was another successful step on EQS Group's path to becoming the world's leading cloud provider for digital investor relations.  We are constantly focused on producing cutting edge solutions for companies who are facing the challenges that the three mega trends of digitization, regulation and globalization pose. Our focus on these areas will drive us to grow profitably and create lasting value for our shareholders for many years to come." 

The new European Market Abuse Regulation that took effect in the second half of the year significantly boosted sales in the domestic market. The new regulation expands ad hoc obligations to a considerably larger group of listed companies and mandates expanded, comprehensive insider regulations. As a result, EQS developed the INSIDER MANAGER tool as a standard workflow solution for complying with these increased mandatory ad hoc and insider rules for investor relations departments in Germany. INSIDER MANAGER is now in demand by companies throughout Europe.

EQS Group AG's  majority takeover of ARIVA.DE AG in the second half of 2016 led to the subsidiary being consolidated into EQS financial statements for the first time, thereby raising sales and EBIT. For its part, ARIVA.DE AG contributes a high level of sales dynamics in regulatory services, due in large part to the pan-European introduction of basic information sheets for financial products in accordance with the PRIIP regulation. 

In total, EQS Group AG saw a 38% increase in sales in Germany, up to €20.38 million,  of which €4.75 million accounted for consolidated sales of ARIVA.DE AG. 

EQS Group AG's strategic market position has improved significantly in 2016, not least due to its accelerated international expansion. The Group is now represented on all major capital markets with its own staffed offices. With its entry into United States and its new subsidiary in the United Arab Emirates (UAE), EQS Group AG has completed its expansion to all global financial centers. 

Foreign business accounted for 22% of overall sales in 2016, up from 20% the previous year.  All foreign subsidiaries contributed to this increase. Revenues from foreign companies rose by 57% to €5.68 million. These established offices achieved double-digit growth rates. 

The Asian subgroup EQS Asia Ltd achieved an increase in sales of 18% to €2.58 million in the 2016 financial year.  Losses compared to the previous year were significantly reduced. In Switzerland, revenues rose by 176% to €2.15 million as a result of the acquisition of Tensid AG. Our Russian subsidiary increased sales by 10% to €724,000 despite a market environment which remains difficult. 

EQS Group AG's expanding international networks are transforming the company to  new dimensions.  Our successful growth strategy both at home and abroad is firmly founded on investments in organization and processes as well as in the development of new cloud products.  Despite high sustained investment, non-IFRS EBIT in Germany only decreased by 5%, amounting to €3.57 million. Non-IFRS EBIT abroad improved significantly to €-289,000 (down from €-786,000).  Against the backdrop of faster expansion, these improvements underscore the fact that EQS Group AG's foreign markets offer great potential and that the company's products are being built into a sustainable, highly profitable business. 

As result of its international growth strategy, the Executive Board of EQS Group expects double-digit growth in sales in 2017 of between 20% and 25%, up to between €31.2 million and €32.5 million. At the same time, further expansion and expansion expenditures amounting to around €1 million will be incurred for 2017, but adjusted EBIT is also expected to increase by 10% to 20%, up to between €3.6 million and €3.9 million.