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Press Release -- August 8th, 2011
Source: Telecity Group
Tags: Earnings, Exchange, Expansion

Telecity Group plc results for the six months ended 30 June 2011

TelecityGroup, Europe's industry-leading provider of carrier-neutral data centres, has today announced it has acquired Data Electronics Group Limited ("Data Electronics"), Ireland’s leading provider of highly connected carrier-neutral data centres, for a total consideration of £87.6 million in cash.

Telecity Group plc (‘TelecityGroup’, ‘the Group’ or ‘the Company’), Europe’s industry-leading provider of premium carrier-neutral data centres, today announces its results for the six months ended 30 June 2011.

Highlights

  • Revenue up 19.8% to £112.2m (H1 2010: £93.7m)
  • EBITDA(1) up 30.5% to £49.4m (H1 2010: £37.9m)
  • EBITDA margin up to 44.1% (H1 2010: 40.4%) Adjusted(2) profit before tax up 44.6% to £31.0m (H1 2010: £21.4m)
  • Adjusted diluted earnings per share up 27.3% to 11.2p (H1 2010: 8.8p)
  • Acquisition of market-leading carrier-neutral data centre operator in Ireland, Data Electronics Group Limited, for a total consideration of £87.6m brings critical mass and secured expansion capacity in a growth territory
  • Total available customer power at the period end up to 59MW (H1 2010: 54MW), increasing to 63MW with the acquisition of Data Electronics
  • Total announced(3) customer power including the acquisition of Data Electronics up to 116MW Senior debt facility expanded by £100m to £300m and term extended to May 2016 with interest rate savings

Statutory equivalents

The highlights above exclude the effect of other financing items as disclosed on the income statement, which comprise foreign exchange gains and losses on financing items and, in respect of the prior period, costs of refinancing (note 16). These items are not considered to be part of the underlying business of the Group. If these items are included, the following statutory equivalents result:

  • Profit before tax of £33.9m (H1 2010: £14.3m)
  • Diluted earnings per share of 12.6p (H1 2010: 6.2p)

A reconciliation between the adjusted and unadjusted figures is contained in note 16.

Michael Tobin, TelecityGroup CEO, said:

 “TelecityGroup’s strong performance has continued throughout the first half of 2011. The Group achieved excellent results, with strong growth in revenue, EBITDA and EPS.

Customer demand remains strong and broad-based. Our announced capacity expansion programme to meet this demand is well underway and we are on-track to almost double our available capacity to 116MW most of which will be achieved in the next four years.

I am particularly pleased to announce the acquisition of Data Electronics. This brings growth potential in a location where we have for some time been capacity constrained and which many international companies view as their preferred entry point into Europe. It also establishes TelecityGroup as the market leader in Ireland. I am delighted to welcome the Data Electronics team to the Group.

I remain confident that 2011 will be another strong year for TelecityGroup. Looking forward, we will maintain our successful organic growth strategy and look to continue to augment this with value enhancing acquisitions within Europe."

Download full results announcement (pdf)
Watch Michael Tobin discuss the half year results

(1) Earnings before interest, taxation, depreciation and amortisation (note 16).

(2) Adjusted to exclude the effect of other financing items as disclosed on the income statement, which comprise foreign exchange gains and losses on financing items and, in respect of the prior period, costs of refinancing (note 16).

(3) Total available customer power when all currently announced expansion projects are complete.

For further information please contact:

TelecityGroup: Investors:
Matthew Springett +44 (0)20 7005 6337
Media: James Tyler +44 (0)20 7001 0076
Brunswick: Sarah West/James Olley +44 (0)20 7404 5959

Notes to Editors

Telecity Group plc

TelecityGroup is the leading provider of carrier-neutral data centres in Europe, operating highly connected facilities in key cities.

These data centres are the places in which separate networks that make up the internet meet and where bandwidth-intensive applications, content and information is hosted. As such, they are the key network hubs, or enabling environments, of the European digital economy. TelecityGroup’s customers take advantage of the highly connected facilities to run, store, share, distribute and access digital media, IT applications and information effectively and efficiently.

Telecity Group plc is listed on the London Stock Exchange (LSE: TCY).

www.TelecityGroup.com/investor

The content of the Telecity Group plc web site should not be considered to form a part of or be incorporated into this announcement.

Cautionary note regarding forward-looking statements

This announcement includes statements that are forward-looking in nature. All statements other than statements of historical facts could be deemed to be forward-looking statements. By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. Accordingly, the actual results, performance or achievements of the Company may be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, due to known and unknown risks, uncertainties and other factors. Except as required by the Listing Rules and applicable law, Telecity Group plc undertakes no obligation to update or change any forward-looking statements to reflect events occurring after the date such statements are published.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities in the United States, or any other jurisdiction. The Company's shares have not been registered in any U.S. jurisdiction, and, in particular, will not be registered under the U.S. Securities Act of 1933, as amended or any applicable state securities laws.

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