Telecity shares drop over fears of a weak euro
TELECITY’S shares dropped five per cent yesterday despite a positive interim statement from the data centre provider as investors fretted over the impact of the falling euro.
The company delivered what Liberum analyst William Shirley called an unsurprisingly upbeat trading update, pointing to growth in both revenue and profitability.
Telecity grew available customer power by more than ten per cent to 75 megawatts over the duration of the quarter, and said it expects to announce further expansion plans over the course of this year.
But the group admitted the positive results came “despite the relative weakness of the euro and Swedish krona, which together account for over half of revenues”, spooking traders over the security of Telecity’s upward trajectory.
Chief executive Michael Tobin commented: “I am delighted with TelecityGroup’s performance to date in 2012.
“In particular, it is exciting to see new capacity coming online in prime locations which will enrich the group’s position at the heart of the European digital economy and greatly enhance the group in terms of scale and profitability.”
Telecity’s maiden dividend, which was announced at its full year results in February, will be paid out at the end of the coming quarter.