||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Real-Time news about Telecity (London Stock Exchange): 0 recent articles
|silverfern: INteresting but no substance there at all imho. Just read the whole of the RNS especially this bit: "...announce that they have entered into a definitive agreement on an all-share merger on the same terms as announced on 11 February 2015. The transaction will be structured as an offer by TelecityGroup to acquire all the issued and to be issued share capital of Interxion. (not may be or could be)
The boards of TelecityGroup and Interxion believe the combination of the two businesses is strategically compelling." etc . I will buy back in when the deal finally becomes done as there is a buy back programme for £800m which will support the share price|
|spacecake: Share price creeping back up, will common sense win the day.
Maybe I'm a bit thick, but the new revenue per kw metric seems irrelevant, the figure could move around for all sorts of reasons.|
|spacecake: Well, the chart after all is just a record of where the share price has been, not were its going. Fundamentally you could say TCY is expensive on historical measures, but its got a good growth record in a growing market.|
|spacecake: Agree, its way, way down, this should be the road to share price recovery IMHO, but markets can be crazy places from time to time. JPM overweight, £9 target.|
|spacecake: I'm a bit surprised at the response to the latest numbers update, if we go back to the start of 2012 (2011 reported results), share price around 650p, reported adjusted eps of 24.1p. No dividend !
Today share price about the same (650p) but adjusted eps reported at 36.5p, thats over 50% increase and a 10.5p dividend.
It just seems crazy.... but make your own mind up on the matter.|
|mj19: 2013 results described as 'good'
- Revenue, EPS and profit all higher
- Numis: 2014 revenue guidance not fully comparable to consensus
Telecity Group saw its shares dive more than 11 per cent in early trading Wednesday after predicting 2014 revenue would be below that forecast by analysts, and despite a good set of results for 2013.
The data centre services company said it expected revenue to be between £355m and £362m at current foreign exchange rates, notably lower than the £369.51m pencilled in by analysts. However, allowing for the impact of certain one-offs - such as some sub-leases ending and currency effects - guidance was little changed, some analysts held.
The group said 2013 had been a "solid" year in which it had delivered good financial results. For the 2013 full-year, revenue leapt 15.1% to £325.6m (2012: £283.0m), with pre-tax profit of £88.44m (2012: £76.15m). The cost of sales rose to £138.9m from £120.2m a year earlier.
Adjusted diluted earnings per share rose 17.7% from 31.0p to 36.5p, while the final dividend was increased by 40% to 7.0p, giving a total dividend payment of 10.5p for the year, up significantly from 7.5p.
During the year, the group entered the new markets of Istanbul, Sofia and Warsaw through the acquisitions of SadeceHosting, 3DC and PLIX.
Chief Executive Officer Michael Tobin said: "Telecity Group made good progress in 2013, with successful entry into three new markets and the delivery of a solid set of results. On an organic basis we opened new capacity across Europe, typically around existing sites, where connectivity is high and we have growing demand from ecosystems of interconnected customers.
"We look forward to capitalising on the opportunities 2014 offers. We will continue to grow the company, with a strong focus on value creation through profitable growth, disciplined capital allocation and returns to shareholders."
The group also revealed it had short-listed a number of "strong candidates" for the position of Chief Financial Officer.
A lot of opportunity for confusion in results
Numis warns that there is a lot of room for confusion in today's numbers out of Telecity, given that guidance is not offered on a complete comparable basis and includes a currency impact. That means that guidance for fiscal year 2014 is in fact "little changed" and disclosure by the company has in fact improved.
On the downside, the broker said the company's guidance for capital expenditures looks "very high". Nevertheless, today's fall in the share price is heavily overdone, they say.
The share price fell 11.16% to 648.50p by 08:40 Wednesday.|
|ukinvestor220: Telecity does weakness give an opportunity?
By Chris Bailey - Tuesday 10 December 2013
Share this article with your comrades in revolutionary capitalism
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Most investors can see that data and the internet are still strong investment themes. Despite phenomenal growth over the last decade, consumer and business on-line activity is still growing fast. We can all see this in our day-to-day lives, as we interact with a growing range of devices.
So if I then said that the leading UK-listed company in the backbone of ensuring these consumer and corporate data and related requirements were met was trading near a two year share price low, then I think you would agree it was worth a look, at least.
Telecity (TCY) is Europe's leading provider of 'premium carrier-neutral data centres' with data centres in prime city centre positions from London to Helsinki to Istanbul plus many others in-between. As the company proudly notes on its website:
'our data centres are enabling environments in which the separate networks that make up the internet meet and where bandwidth intensive applications, content and information are hosted'
Bandwidth intensive is absolutely key. Businesses and customers/consumers want to access their services and related information immediately. Managing this data flow and data transfer is becoming increasingly difficult...but that is where a company like Telecity can help. Their client list includes many well-known businesses.
Back in July at their half-year results point, Telecity talked about 16-17% revenue and ebitda year year-on-year, plus they were generating cash after making expansionary capex to help them capture the current business opportunities. Back then, the shares took a tumble on fears that their new data centres would not be able to generate the returns historically seen by the group. This slide has continued and for the past few weeks the share has been trading below 700p. That's quite a fall from the psychologically important round number of a 1000p share price achieved in early July.
In a timely fashion, an article appeared in the Sunday Times a couple of days ago which captured nicely some of the current fears around Telecity shares. One of the key concern points was that:
'the chief executive Michael Tobin stuck with commitments to increase capacity at some of the dozen data centres it operates around Europe, despite fears of a glut that could push rates down'
The most recent corporate presentation from Telecity highlights new capacity growth across many of its existing sites...but to jump to 'fears of a glut' seems too pessimistic.
Data centres are not easy to build. The location has to be right in order to offer speed to potential customers (which is why most of Telecity's locations are in city centres), additionally the significant power requirements require significant planning and interaction with planning authorities, even before you start to factor in all the operational requirements.
Reflecting this and unlike so much in internet-related matters capacity additions in the market are almost exclusively coming from Telecity and its two big global peers, the US-listed Equinix and Interxion.
My personal view are that given the continued growth in internet traffic and data centre requirements, these fears are overstated. Telecity themselves in their November interim management statement said that they were continuing 'to focus on creating shareholder value, through delivering controlled and profitable growth'. Additionally, Equinix were talking at a London conference last week and continued to talk positively about the sector, especially concerning opportunities in Europe.
The other critique in the Sunday Times article concerned the company's communication with the market. Additional to this, the reasonably long-standing CFO is leaving at the end of January 2014, with the company yet to announce a successor. Undoubtedly these issues are overhanging the market too.
Equinix announced a share buyback earlier this month and, in my view, Telecity need to similarly respond to the implied criticisms in the press at or before the next update in early February. The new CFO announcement would also be helpful for full clarity purposes as mentioned above, the company is cash generative and does not have worrying net debt levels.
At around a x19 P/E rating on this year's earnings, Telecity is not the cheapest share in the market but few companies with a near £1.4bn market cap have its continued growth opportunities and can generate cash for investors even whilst investing in improving their internal infrastructure to fully capture this opportunity.
Taking everything into account, with the share trading at around two year lows, I think it is time to look closely at the company due to the combination of a falling share price, a strong theme, a valuation that has compressed, few natural competitors and low sentiment in the press.
Chris Bailey is a City Veteran (aged 40) who now writes for his own eclectic website www.financialorbit.com
- See more at: http://www.shareprophets.advfn.com/views/3041/telecity-does-weakness-give-an-opportunity|
|freddie ferret: Re the comments to my last post.
No it would not make sense for me to sell now since I do not know where the share price is going, I think (as distinct from know) that it is going to 200p.
I think the company has good prospects hence I hold. The price of a share does not reflect the value of a company. Share prices change in relation to investor sentiment not in relation to fundamentals. I purchased high, if it falls then it will be a good buying opportunity for me.
You should not invest on the basis of the direction of the share price but on the basis of your view of the company.
If the share price is lower and you like the company buy.
If the share price is higher and you do not like the look of the company sell.
On the current share price trend we should hit 200p sometime Feb or March IMHO.|
|freddie ferret: Fraser038.
Re your post 1168.
I will try to explain.
In this world there are two types of people that buy shares.
The Investor and the Trader.
The trader thinks in terms of price now, direction and momentum.
The investor thinks in terms of value. In value investing the investor takes a view of how much the share is worth on a fundamental basis, earnings, earnings growth and so on. If the price of a share that he likes falls then he just buys more because they are cheaper.
The trader if he sees the price of a share he holds fall then he panicks and sells. As the traders panick so the share price falls further until investor buying overcomes trader selling. That is my take on things anyway. If I buy at 200p I will get five times as many shares compared to buying at 1000p. It is your attitude toward the company that counts.|
|silverfern: well next MOnday is interims. I will wait til then - if there are no surprises I think this will do well from here given the share price is now where it was 18 months ago. However the market is negative against TCY right now, and it may be the share fall anyway- we shall see|
Telecity share price data is direct from the London Stock Exchange