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Today, TeleCity Group, one of Europe’s three main players in the carrier-neutral data center offering, announced its intention to start paying dividends from next year.
The news is part of the company's Interim Management Statement, which is a kind of Q3 update, as the company issues results every 6 months.
TeleCity Group also confirmed its positive outlook for 2011, with demand for premium highly-connected data center capacity in Europe seen as remaining strong.
The company took the opportunity to remind investors that its financial position remains very robust as its net debt is modest in relation to EBITDA (approximately 1.5x full year 2011 expectations, lower than its peers) and its operations are highly cash generative. A £300m ($475 million) debt facility is also in place to support the company's organic and inorganic growth opportunities.
As a consequence, management believes that the company’s cash flows allows for the introduction of a progressive dividend policy in 2012, with an inaugural payment to be made following first half 2012 results.
TeleCity is probably the first leading data center provider announcing a dividend. The company's performance, on the stock exchange, has been very strong so far, as it gained almost 30% year-to- date. Here is a quick look at how other stocks performed in the sector.
According to the data released today, content represents the best vertical for the company in terms of new customers wins recently: