TIDMTCY
RNS Number : 9163V
Telecity Group PLC
03 November 2014
3 November 2014
TELECITY GROUP PLC
INTERIM MANAGEMENT STATEMENT
3 November 2014: Telecity Group plc ('TelecityGroup', 'the
Group' or 'the Company'), Europe's industry-leading provider of
premium carrier-neutral data centres, today issues the following
Interim Management Statement for the third quarter of 2014.
Summary
-- Year to date revenue growth of 9.4% (organic FX neutral)
-- EBITDA margin remains strong at 46.9%
-- Good year to date gross order wins across the Group
-- Full year organic currency neutral revenue growth and capex guidance re-affirmed
-- CEO recruitment progressing well
John Hughes, Executive Chairman, Telecity Group plc, said:
"I am very positive about the direction of the Group. This is a
strong business with a healthy future. In February we will update
the market on capital structure, capital allocation and operational
priorities resulting from the work currently being undertaken, but
for now I am pleased to be re-iterating full year guidance for both
revenue growth and capex, which confirms the direction of travel.
We are making good progress in the search for a new CEO and are
very pleased with the calibre of candidates we are seeing. In his
short tenure so far I am delighted with the contribution Eric
Hageman has made in his role as CFO."
Commentary on the quarter ended 30 September, 2014
Demand for premium carrier-neutral data centres remains robust
across TelecityGroup's markets. The Group has experienced good
gross order wins in both the UK and Rest of Europe and is on track
to meet its existing 2014 organic currency neutral revenue guidance
of GBP343m to GBP350m.
We continue to see strong demand from our existing content and
connectivity customers, accounting for over half of new orders in
the period.
In the UK, year to date gross order wins have been robust. Churn
has remained above historical levels but below those recorded in
first half 2014. As previously indicated, 2014 headline revenue
growth has been held back by the loss of sub-lease revenue at
Harbour Exchange and the closure of Prospect House in London.
Performance in the Rest of Europe continues to be strong and
growth has been particularly notable in Amsterdam, Stockholm,
Dublin and Frankfurt. Churn in the Rest of Europe reduced slightly
compared to that recorded in first half 2014. Whilst reported
revenue growth has been adversely impacted by movements in foreign
exchange rates, we remain pleased with underlying operational
performance.
Margins have remained strong and stable during the period at
46.9% in line with first half 2014 and are expected to stay at
similar levels for the remainder of the year.
We have added total capacity of 4.6 MW in the third quarter,
mainly in the Nordic region and nearly doubled our capacity in
Poland, taking total operational capacity to 110.9 MW. Total
announced customer power now stands at 164.7 MW and build-out of
this will be driven by customer demand.
During the period, we have continued our rigorous review into
how the Group allocates its capital, as summarised at the capital
markets day held on 17 September, as part of the on-going exercise
to improve the Group's operational performance. We will update the
market fully on our progress in this and in other operational areas
at our full year results in February.
The revenue range, which was GBP355m to GBP362m earlier this
year translates, purely on an FX movement basis, to GBP343m to
GBP350m based on foreign exchanges rates on 31 October 2014. The
Group is maintaining guidance for a full year 2014 organic currency
neutral revenue growth rate of 9% to 11%; stable EBITDA margins and
capital expenditure of GBP110m to GBP130m.
Conference call details
TelecityGroup will host a conference call today for analysts and
investors at 8.30AM GMT. Details are as below and a replay will be
available at www.telecitygroup.com/investor.
Conference call number: +44(0)20 3427 1913
Conference call code: 7705058
For further information please contact:
Investors:
TelecityGroup:
Rosie Wilkins +44 (0)20 3229 1138
Media:
TelecityGroup:
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 premium 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).
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. 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.
Note on unaudited financial information
The financial information that this statement is based on
relates to the period from 1 January 2014 to 30 September 2014 and
is based partly on unaudited management accounts.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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