Telecity bets on Russian growth as shares jump to record value

DATA services firm Telecity beat expectations yesterday and announced an investment in Finland, a stepping stone to the growing Russian internet market.

The company, which provides carrier-neutral internet connections, said revenues in the first half of the year jumped 22.4 per cent due to a rise in data-intensive cloud computing systems. Shares leapt by seven per cent on the news to their highest point since the firm’s 2007 listing.

Telecity completed its £3.7m acquisition of Helsinki-based firm Tenue yesterday, a move designed to take advantage of the increasing internet activity between European servers and Russia. Eighty per cent of traffic between Moscow and Western Europe goes through Helsinki, “[The deal] expands our European growth platform and allows us to serve the growing demand generated from the Helsinki internet hub,” chief executive Michael Tobin said.

The firm’s revenue was up to £137.3m while its operating profit rose 30 per cent to £43.4m. Telecity announced its first dividend in February.