Telecity says on track as orders pick up in Q3
LONDON Nov 4 (Reuters) - British data-centre firm Telecity Group said on Monday that it was on track to meet its own expectations after it won the highest number of net orders of the year so far in the third quarter.
The group, which provides data services to corporate clients across Europe, said trading had been particularly strong in Amsterdam, Stockholm and Dublin, although it said conditions continued to be challenging in Frankfurt.
Chief executive Michael Tobin said: "Whilst 2013 has been a more challenging year for the industry as a whole in certain aspects, we are on-track to deliver a solid full year performance in-line with our expectations."
Shares in Telecity, who announced last week that its chief financial officer was stepping down, were trading up 3.6 percent at 787 pence at 0805 GMT, topping the mid-cap index leaderboard . The stock has fallen 7 percent since the start of the year.
Analysts at Liberum Capital, who have a "Sell" recommendation on the stock, said the in-line guidance should reassure a nervous market but they see risks to estimates lying to the downside especially in 2014. "Concerns surrounding capacity and pricing are growing," they said.
Liberum forecasts that Telecity will report adjusted pretax profit of 98.7 million pounds ($157.2 million) for 2013, up from 83.5 million pounds a year ago.
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