TeleCity Group posted a striking 22.4 percent revenue jump for the first half of 2012, reaching £137.3 million, while simultaneously announcing its purchase of Finnish data center operator Tenue Oy. Investors rewarded the news with a 7 percent stock price surge.
The results arrive amid persistent weakness in Europe’s broader economy. Yet demand for carrier-neutral data center capacity remains robust, a sentiment echoed by rivals Equinix and InterXion.
Revenue growth hit 25.6 percent on a constant currency basis. Earnings before interest, taxes, depreciation, and amortization climbed 26.6 percent year over year to £62.6 million, representing 45.6 percent of total revenue. Currency-neutral EBITDA growth reached 30.4 percent.
Adjusted diluted earnings per share rose 36.2 percent to 15.8 pence. The company also declared its first interim dividend of 2.5 pence per share.
Occupancy across TeleCity’s facilities improved to 81.3 percent, up from 80.3 percent a year earlier. The company brought roughly 4,800 square meters, or 8 megawatts, of new data center space online during the period.
The Tenue acquisition cost £3.7 million in cash plus about £0.4 million in associated expenses, on a debt-free and cash-free basis. TeleCity described the deal as a strategic foothold in a country positioned at the crossroads of internet traffic between Eastern and Western Europe. Tenue operates about 1 megawatt of capacity, with room to expand to 4 megawatts.
Previous purchases Data Electronics and UK Grid contributed £8.0 million to revenue and £1.8 million to EBITDA during the half. TeleCity indicated it will keep hunting for acquisitions to enter new markets or add capacity in existing ones. The company’s expansion pipeline includes several projects slated for the coming months.
