Telecity OCN Revenue Rises; Sees FY Revenue Growth Towards Low End Of View

(RTTNews) - Carrier-neutral data centres provider Telecity Group plc (TCY.L), which is in deal to be acquired by US-based Equinix Inc. (EQIX), reported Wednesday that its year-to-date organic currency neutral or OCN revenue growth was 7.2 percent, with underlying revenue growth of 9.7 percent.

The results were driven by an improvement in the UK's revenue growth on both an OCN and underlying basis through 2015.

In the third quarter, the company recorded stable adjusted EBITDA margin of 46.9 percent.

The company noted that a further improvement in the underlying revenue growth rate in the fourth quarter is expected which, along with the significant reduction in prior year non-recurring items in that period, results in full year revenue growth guidance being reiterated.

The company said it expects FY2015 revenue growth to be towards the lower end of the guided revenue growth range.

Telecity expects 8 percent - 10 percent revenue growth on an OCN basis, and stable EBITDA margin with slight downside pressure from investment.

Telecity and Equinix continue to progress the recommended transaction announced on May 29 with completion expected in H1 2016.