Q-FREE SECOND QUARTER AND FIRST HALF YEAR 2014 RESULTS
Q-Free reported revenues of NOK 187 million for the second quarter 2014, an increase of 26 percent from the same quarter last year. Operating profit (EBITDA) improved to NOK 20.9 million from NOK 16.1 million, EBIT improved to NOK 2.2 million from NOK 0.3 million, whereas pretax profit improved to NOK 0.3 million from a loss of NOK 2.3 million in the second quarter 2013.
The revenue composition has over the last two years reflected a substantial increase in product sales and lower project revenues. This trend continued in the second quarter 2014, with product sales reaching the highest level since the fourth quarter 2011.
For the first half year 2014, revenues increased 24 percent to NOK 355 million (286). EBITDA was NOK 38.6 million (-22), EBIT was NOK 3.1 million (-53), and pretax profit was NOK 1.8 million (-57).
Q-Free has taken steps to improve the cost position and strengthen the platform for future revenue generation. The Profit Improvement Program initiated last year has significantly reduced the fixed cost base with limited adverse effects on operational capacity. In addition, Q-Free in January 2014 initiated an internal project to increase customer focus, increase internal cooperation and efficiency, generate more leads in the small and mid-sized segment of the Road User Charging market, and generally broaden the scope of business. This has resulted in organisational changes that together with the announced acquisitions will enable Q-Free to provide a broader portfolio of products and value added services to its customers, and at the same time strengthen Q-Free's position as an industry leader. Going forward, Q-Free will focus on realising synergies within the Group and on growing the business further, both with organic growth as well as add-on acquisitions.
The Road User Charging and Advanced Transportation Management Systems markets represent a megatrend driven by market demand for infrastructure financing, environmentally friendly solutions, congestion management and on automation of manual solutions. Q-Free continues to see a positive long-term outlook, with opportunities both in the traditional Road User Charging market and in the market for Advanced Transportation Management Systems.
Enclosed: Q2-2014 report and presentation
For further information, please contact:
CEO Thomas Falck, cell: +47 468 00 767
CFO Roar Østbø, cell: +47 932 45 175
Q-Free is a leading global supplier of products and solutions within Road User Charging and Advanced Transportation Management Systems. The Q-Free Group will have approximately 430 employees with offices in 17 countries and presence on all continents after the closing of the Open Roads transaction. The Q-Free head office is in Trondheim, Norway. Q-Free is listed on Oslo Stock Exchange under the ticker QFR.