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Expansion-hungry Equinix posts bumper sales

Results for acquisition target Telecity look limp in comparison

Net income at US data centre outfit Equinix jumped to $59.5m (£38m) for the company's second quarter of 2015, up from $11.3m (£7.2m) in the same period last year. Meanwhile, sales rose 10 per cent to $666m (£426m) for the three-month period.

Equinix chief executive, Steve Smith, said: “This marks our 50th quarter of consecutive revenue growth, and the continued strength and momentum of our business reflects our strategic position and the value of our global platform."

The fat-piper announced in May that it is enlarging its presence in Europe by gobbling up UK-based Telecity for £2.3bn. The deal will add a further 39 European data centres to the US-based company's existing empire of 100.

In contrast to Equinix's already-rapid growth in Europe, Telecity has posted more modest results. According to its Companies House filing for the full-year 2014, profit slipped from £65.2m to £59.7m, while sales at the outfit increased by 7.1 per cent to £348.7m.

Philip Carse, analyst at Megabuyte, said: "Contrast Equinix’s EMEA underlying revenue growth of 23 per cent with the 6.6 per cent underlying first-half revenue performance of its bid target, Telecity. The latter [has been] impacted by several major UK issues."

He added: "Nevertheless, Equinix said that it is happy with Telecity's performance and, with a first half 2016 expected closing of the deal, most of the UK issues will have worked their way through the system by then."

For the full year of 2015, Equinix expects total revenues of $2.685bn to $2.695bn, an increase on the previous year of 10-13 per cent. ®

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