Telecity H1 Profit Declines, Suspends Share Buyback; Backs Outlook

(RTTNews) - Carrier-neutral data centres provider Telecity Group plc (TCY.L), which is in deal to be acquired by US-based Equinix Inc. (EQIX), repoted Wednesday that its fist-half profit before taxation declined to 14.84 million pounds from last year's 49.97 million pounds.

Earnings per share were 1.9 pence, down from 18.7 pence last year.

Adjusted earnings per share went up 2.8 percent on an organic currency neutral or OCN basis to 18.6 pence.

Revenue declined slightly to 173.46 million pounds from 174.09 million pounds a year ago. Revenues went up 6.6 percent on an organic currency neutral basis. Underlying revenue growth was 9.3 percent.

Further, the company announced that interim dividend would be up 11.1 percent to 5.0 pence per share.

The company also said that its previously announced 400 million pounds 3-year share buy-back programme has been suspended in order to comply with the specific rules of the City Code on Takeovers and Mergers.

Looking ahead, the company confirmed that the 2015 full year guidance remains valid, and continues to expect 8 percent - 10 percent revenue growth on an OCN basis and stable EBITDA margin with slight downside pressure from investment.