TeleCity Group Reports Solid Growth

TeleCity Group, the European provider of network neutral colocation services, today reported solid growth as it announced its financial results for the year ended December 31, 2010. The company said it will continue to pursue opportunities for growth, which could include entering new markets or adding growth capacity in existing markets.

Revenue was up 15.9 percent, compared to 2009, to £ 196.4 million ($314 million). On a same currency base, TeleCity achieved a 17.7 percent growth rate. Adjusted EBITDA increased 30.5 percent to £ 83.4 million ($133.4 million), from £63.9 million in 2009 ($102.2 million). Adjusted EBITDA margin increased to 42.5 per cent, compared to 37.7 percent in 2009. The company delivered an adjusted profit, before tax, of £ 51.4 million ($ 82.2 million), up 45 percent compared to 2009.

"The Group achieved excellent results, with strong growth in revenue, adjusted EBITDA, EPS and operating free cash flow," said Michael Tobin, TeleCity Group CEO. "We also secured a substantial amount of additional capacity in key European internet hubs, which will enable us to meet our customers’ demand for highly-connected capacity as the digital economy grows."

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The company reiterated its intention to pursue both organic growth and acquisitions, either for the purpose of entering new markets, or to provide growth capacity in existing markets where its data centers are fully occupied. The company is not looking at the US market, though, for expansion.

During the year, the total fitted-out space increased 9.8% to 64,214 sq.m (2009: 58,496 sq.m) and total available customer power increased 13.7% to 58 megawatts (‘MW’) (2009: 51MW).

Some other key metrics include:

Here is picture of the company's plans for future growth (click for larger image):

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UK and Ireland represent more than 50% of TeleCity's revenue stream. Here is a map highlighting the space available in each country where TeleCity has a data center:

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