Telecity on track to meet full-year expectations

Date centre operator Telecity has reported that its year-to-date financial performance and full year earnings outlook both continue to be in-line with management's expectations.

Date centre operator Telecity has reported that its year-to-date financial performance and full year earnings outlook both continue to be in-line with management's expectations.

The group said the on-going growth of the digital economy has continued to drive strong demand for premium highly-connected data centre capacity across Europe and this has contributed to what has been a 'good start' to 2013.

The order book has seen solid growth in both its UK and Rest of Europe divisions and management continue to expect earnings to be in-line with market estimates for the full year.

The current financial position is 'robust', with operations proving to be highly cash generative.

In Turkey, the group has purchased Sadece, the country's leading provider of data centre and hosted services, for an initial £25m.

In its trading update, Telecity said: "Although currently smaller than the group's other markets in terms of developed data centre capacity, it [Turkey] has the fastest internet traffic growth rate in Europe.

"Entry into the market enhances TelecityGroup's medium-term growth potential, bringing management expertise and a strong customer base in this exciting market, while being earnings neutral during the initial investment phase."

In the rest of Europe the company has continued to expand its capacity in response to customer demand, with additional capacity being brought online in London and Helsinki in the year-to-date.

Michael Tobin, Chief Executive of TelecityGroup, said: "I am delighted with TelecityGroup's performance to date in 2013. We have enjoyed a very positive start to the year, delivering strong results, while continuing to develop our growth platform with capacity opening in London and Helsinki.

"I am particularly excited about the acquisition of Sadece, which gives us a market leading platform to capture future growth in the very dynamic Istanbul market."

The share price fell 1.8% to 928.50p by 08:25 Tuesday.

NR

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