* 2012 core earnings up 22 pct, in line with market view
* Says confident on 2013 growth
* Shares up 6.6 pct
By Paul Sandle
LONDON, Feb 12 Data centre operator Telecity
posted a 22 percent rise in full-year earnings on
Wednesday, meeting analyst expectations, and gave a confident
outlook for 2013 underlined by robust demand.
The British company bases its facilities in European cities
like London, Amsterdam and Paris, where multiple Internet
connections provide near failsafe services to retailers, banks,
social media sites and video-on-demand providers.
Chief Executive Michael Tobin said the group was continuing
to build new capacity, which rose to 86 megawatts from 68 last
Demand was driven by growth in online activity, both at home
and on mobile devices, he said.
"You probably watch TV over the Internet, do some online
banking, do your Sainsbury's shop, download a movie or make an
Amazon purchase," he said. "All of these things are driving
Telecity, which competes with Equinix and
Interxion, triggered some concerns among investors last
year about whether a slowdown in new capacity might be a sign of
Tobin said on Wednesday that there had been delays in
opening new capacity in London and Amsterdam, but that these
were caused by difficulties in obtaining planning permission and
power supplies rather than demand weakness.
"Some analysts misinterpreted the slowdown of capacity
growth as a slowdown as demand," he said. "(But) not
withstanding all of those of challenges, we ended the year with
the largest expansion of capacity in our history."
Analysts at Berenberg said guidance from management that it
should be able to grow earnings in line with forecasts of about
20 percent for 2013 would reassure the market.
Milan Radia at Jefferies, meanwhile, who has a "buy" rating
on the stock, said it was a solid set of results.
"Recent speculation regarding downgrades and capacity delays
is evidently misplaced, creating a compelling buying
opportunity," he said.
Telecity's adjusted core earnings rose 22 percent to 129.5
million pounds ($202 million) in the year to end-Dec.
Shares in the group, which fell to a 16-month low of 765
pence in November, were 6 percent higher at 877 pence at 1208