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This morning, Telecity Group, one of Europe’s leading provider of carrier-neutral data centers, and listed on the London stock exchange, announced its results for the first half of 2011 and also the acquisition of Data Electronics Group in Ireland.
A quick look at some highlights:
- Revenues were up 19.8% to £112.2m, compared to £93.7m in 1H 2010, with UK & Ireland growing 19.6% and the rest of Europe about 20%;
- EBITDA grew 30.5% to £49.4m, compared with £37.9m in the first half of 2010, a record 44.1% margin;
- Adjusted profit before tax went up 44.6% to £31.0m, as compared to £21.4m in 1H 2010.
Rumors about TeleCity's intention to buy Irish rival Data Electronics were already circulating, so the news comes as almost no surprise.
With this move, TeleCity strengthens its position in Ireland, adding inventory in a market where the company had traditionally been capacity constrained, and becomes the market leader in the country. As shown in this slide, Data Electronics is also home to the INEX, the Dublin internet exchange.
Occupancy rate was up to 80.3% at the end of the first half of 2011, but the company kept in place an aggressive building program to cope with expected growth:
Having said that these are hard times to find a rationale in stocks, the market seemed to like both the acquisition of Data Electronics and TeleCity's first half results, as the stock is now positive in early trading.