Preliminary results for the 12 months to 31 December 2008
TelecityGroup delivers full year 2008 EBITDA of £40.4m and adjusted profit after tax of £15.3m
RNS Number : 5974M
Telecity Group plc
02 February 2009
Telecity Group plc ('TelecityGroup' or the 'Group'), Europe's leading provider of premium network independent data centres, today announces its audited preliminary results for the year ended 31 December 2008.
Revenue up 35.9% to £133.0m (2007: £97.9m)
EBITDA(1) up 109.2% to £40.4m (2007: £19.3m)
EBITDA margin up to 30.4% (2007: 19.7%)
Adjusted(2) profit after tax of £15.3m (2007: loss of £1.1m)
Adjusted(2) earnings per share 7.8p (2007: loss of 0.6p)
The above highlights are before the deferred taxation credit and foreign exchange gains on financing items (note 4) which are not considered to be part of the underlying business of the Group. If these items are included, the following statutory equivalents to adjusted profit after tax and adjusted earnings per share result:
Profit after tax of £25.3m (2007: loss of £7.1m)
Earnings per share of 13.0p (2007: loss of 4.3p)
John Hughes, TelecityGroup Chairman, said:
"2008 has been an excellent year for TelecityGroup. The Group has demonstrated its resilience in the face of testing economic conditions by delivering a strong set of results. In addition to this, the management team has laid the foundations for continued growth by opening new capacity in core markets to meet customer demand. I am pleased by the committed take-up of this capacity that has already been secured."
Michael Tobin, TelecityGroup CEO, said:
"During 2008 the Group has achieved strong growth in revenues, operating profit and earnings per share. Demand for our premium data centre capacity remains robust and we continue to win business from leading international companies. We have recently signed new contracts with companies including: NTT, TV1 and Xchanging.
2009 will be another key year for TelecityGroup. A programme of carefully targeted expansion, tailored to meet local demands in our key city markets and maintain our position at the heart of the digital economy in Europe, is underway.
We are embarking on the second phases of our data centre builds in London and Amsterdam and, as previously announced, are undertaking focused capacity expansion with planned new openings in Paris, Stockholm and Milan. I am also pleased to announce today that we will invest €6m to deliver additional power in Frankfurt during 2009 in order to satisfy significantly increased customer demand in this important market. All of these investments are funded from our cash flows and existing borrowing facilities."
Increasingly the most important measure of capacity in our industry is the availability of power for our customers, rather than just space. Our fully funded, demand-driven programme of expansion, which started in 2008, will allow us to lift our power capacity available for customer use from 33MW at the beginning of that year to some 60MW in 2011.The nature of TelecityGroup's business is such that we have a high degree of visibility of our revenues going forward, so we start 2009 with confidence in our continued growth."
(1) Earnings before Interest, Taxation, Depreciation and Amortisation. 2007: £23.4m when adjusted for exceptional items (note 4).
(2) Adjusted for deferred tax credit and foreign exchange gains on financing items, and, in respect of 2007, exceptional operating (note 4).
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Notes to Editors
Telecity Group plc
TelecityGroup is Europe's leading provider of premium network independent data centres offering a range of flexible, scalable data centre and managed services. TelecityGroup specialises in the design, build, and management of highly connected and secure environments in which customers can house their technical, web and internet infrastructure. Each of its data centres acts as a connectivity and content hub facilitating the storage, sharing and distribution of data, content and media. Headquartered in London, TelecityGroup operates 20 network-independent data centres across seven European countries. The data centres are located in prime positions for commerce and connectivity, including London, Amsterdam, Frankfurt, Paris, Stockholm, Milan and Dublin.
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.