Telecity Group plc, Europe’s industry-leading provider of premium carrier-neutral data centres, today issues the following Interim Management Statement.
- Year-to-date financial performance and full year earnings outlook both continue to be in-line with management’s expectations
- On-going customer driven expansion programme on-track, total customer power up to 90MW
- Leading position established in the fast-developing Istanbul market via the acquisition of Sadece
Current trading and outlook
The on-going growth of the digital economy continues to drive strong demand for premium highly-connected data centre capacity across Europe.
TelecityGroup has enjoyed a good start to 2013. The Group has experienced solid order book growth in both its UK and Rest of Europe divisions and management continue to expect earnings to be in-line with market estimates for the full year.
The Group has established a leading position in the Istanbul market with the strategic acquisition of Sadece. Sadece is the leading provider of data centre and hosted services in Turkey. It operates a 1MW data centre, which has a further 1MW of expansion potential.
The Group has paid a consideration of £25m in cash for Sadece, with a provision for the payment of up to another £4m, based on achievement of certain financial objectives and consistent with the base case multiple.
Turkey is a fast-developing market with the prospect of becoming a major internet hub, due both to its large and rapidly growing domestic digital economy and its unique strategic location between Europe and Asia. Although currently smaller than the Group’s other markets in terms of developed data centre capacity, it has the fastest internet traffic growth rate in Europe. Entry into the market enhances TelecityGroup's medium-term growth potential, bringing management expertise and a strong customer base in this exciting market, while being earnings neutral during the initial investment phase.
TelecityGroup’s financial position is very robust as its operations are highly cash generative. Net debt post this transaction remains below management’s target upper limit of 2.5x EBITDA.
Secured capacity expansion
TelecityGroup continues to achieve controlled, sustainable and profitable growth by increasing its capacity across Europe, in response to customer demand.
To date in 2013, additional capacity has been brought on-line in London and Helsinki, in-line with targeted progress. Together with the purchase of Sadece, this has taken total customer available power to 90MW.
TelecityGroup’s total announced capacity across Europe is now 137MW. The majority of the Group’s expansion capacity will come on-line progressively over the next three years, in response to customer demand, giving the Group significant medium-term growth potential.
TelecityGroup continues to seek further growth capacity and has a pipeline of incremental expansion projects across its markets due to continued customer demand. An update on expansion plans will be provided along with the Group's first half results in July.
Michael Tobin, CEO of TelecityGroup, commented:
“I am delighted with TelecityGroup’s performance to date in 2013. We have enjoyed a very positive start to the year, delivering strong results, while continuing to develop our growth platform with capacity opening in London and Helsinki. I am particularly excited about the acquisition of Sadece, which gives us a market leading platform to capture future growth in the very dynamic Istanbul market.”
For further information please contact:
Matthew Springett +44 (0)20 7005 6337
James Tyler +44 (0)20 7001 0076
Brunswick: Sarah West / James Olley +44 (0)20 7404 5959
Notes to Editors
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 are 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 operate, 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).
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. The actual results, performance or achievements of the Group 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.