SIMON STRONG | EVOLUTION SECURITIES
Revenue of £112m is in line with Ebitda of £49.4m and is slightly ahead of consensus of £49.2m We are raising our 2011 to 2012 forecast by two per cent to £100m, with the acquisition of Data Electronics Group likely to take this to around £103m. The recent fall in the stock has left the price performance all but unchanged year to date. We remain buyers of the carrier neutral hosting market, seeing premium growth, and excellent revenue visibility and recession proof earnings.
WILL WALLIS | NUMIS
Telecity's first half results are bang in line with our expectations and we leave our organic forecasts unchanged, although we will revisit our numbers to incorporate today's acquisition. Telecity continues to benefit from a benign market, with very robust demand growth, steady pricing, and an apparent absence of new competition despite the high returns on capital enjoyed in this market. At this stage there does not appear to be much that is likely to de-rail the story, despite the 15 per cent rating premium to US-listed peers.
JONATHAN JACKSON | KILLIK & CO
In its half-yearly report, Telecity announced its first-half revenue was up 20 per cent, to £112m, with operating margin up 3.7 percentage points, to 44.1 per cent. Demand for carrier-neutral data centres in Europe is growing, driven by ISPs and cloud service providers, resulting in a 4.2 per centage point improvement in occupancies, to 80.3 per cent. The group has a solid order book, and expects full-year results in line with consensus expectations.