News

Telecity Management Update
November 2, 2009

TelecityGroup issues Interim Management Statement

Telecity Group plc (‘TelecityGroup’ or the ‘Group’), Europe’s industry leading provider of premium network independent data centres, today issues the following Interim Management Statement for the period from 1 July 2009 to the date of this statement.

Highlights:

  • Trading remains strong, with revenue growth continuing in line with management’s expectations
  • Demand for premium data centre capacity is robust and TelecityGroup’s occupied space increased to over 46,250 sq.m. in the third quarter of 2009
  • The Group’s current expansion programme, targeted to meet incremental customer demand in key markets, is on-track. The Group now has over 48MW of available customer power, up from 38MW at the beginning of 2009 and expected to increase to 51MW by the end of 2009

Current trading

Trading is strong across TelecityGroup’s markets, with every business unit contributing to continued Group revenue growth. This revenue growth is resulting in strong operating profit growth due to a significant element of the Group’s cost base being largely fixed, along with tight control of the variable element of the cost base.

TelecityGroup’s order book pricing is robust and the order pipeline is healthy, with demand for incremental capacity continuing from a wide range of industry sectors.

Demand-led capacity expansion is being delivered according to plan

In line with TelecityGroup’s strategy of opening new space to meet customer demand in those existing markets where capacity is approaching full utilisation, the Group has delivered incremental capacity in London, Amsterdam, Frankfurt, Stockholm and Milan to date this year. The Group’s new Paris 3 data centre remains on-track to be opened in December 2009.

TelecityGroup’s financial position is robust and its currently announced expansion plans, which will increase total Group capacity to over 60MW in 2011, will all be funded from the company’s cash flows and existing borrowing facilities.

The Group is currently considering further capacity expansion in its core European markets consistent with its policy of meeting the ongoing growth in customer demand into the future.

Michael Tobin, CEO of TelecityGroup, commented:

“I am very pleased with TelecityGroup’s performance to date in 2009. We have opened significant new capacity to meet the ongoing growth in customer demand, on time and on budget. Our premium data centres continue to win new and expanded customer orders, with the most notable wins in the third quarter coming from the content, connectivity, financial and application provider segments.

I am confident that the momentum in our business will persist and that TelecityGroup will continue to deliver strong revenue and operating profit growth”.

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