News Column

Telecity Maintains 2014 Revenue Growth Target On Solid First Quarter

April 29, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Telecity Group PLC Tuesday reaffirmed its full-year currency neutral revenue growth target of 10% for 2014, after it said it had seen a solid first quarter to end-March.

The carrier-neutral data centre company continues to expect revenue of between GBP355 million to GBP362 million for the year. It also maintained its medium-term capital expenditure guidance range of between GBP110 million to GBP130 million.

Telecity said that its first quarter currency neutral revenue growth was 9.4% compared to the previous year, accelerated from the levels it had seen at the full year 2013. Earnings before interest, tax and appreciation margins also showed good growth, Telecity said, in line with the 2013 levels.

The company saw total demand for data centre capacity continue to increase in Europe. In its UK division the company saw an "encouraging" level of order wins and said it had seen a particularly good performance from its Powergate site.

Telecity said that the contract wins, combined with price rises, would offset order book churn.

It added 5.0 megawatts of new capacity during the first quarter at its Amsterdam 5 site, taking its total operation capacity to 103.5 megawatts. Telecity said its total capacity pipeline remains at 153.1 megawatts.

The company said it was committed to its progressive dividend policy, and will provide an update on its wider capital allocation strategy with its first half results on August 4.

Telecity also said it will provide further information about the appointment of a permanent chief financial officer in due course, but noted that it was pleased by the progress of its finance team under interim Chief Financial Officer David Crowther.

Shares in Telecity were trading up 12% at 710.00 pence Tuesday morning, the biggest gainer in the FTSE 250.

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Source: Alliance News

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