Demand for cloud services fuels revenue growth for Interoute
Interoute grows EBITDA 18% in first six months of 2010
London, 14 October 2010 – Interoute Communications Ltd, owner operator of Europe’s largest next-generation network, today announced EBITDA of €28m for the first six months of 2010. This represents an increase in absolute EBITDA of 18% over the same period in 2009, while EBITDA margin rose to 20%. Fuelled by the demand for its cloud services and the desire by organisations to simplify the management of their ICT infrastructure, Interoute’s top line revenue grew to €139m. Now in its third year of EBITDA positive growth, Interoute is a fully self-funded and operationally cash positive business.
Owning Europe’s largest private cloud has driven notable growth in Interoute’s enterprise business, as organisations look for a secure and trusted environment to place their business critical assets. Equally, the launch of its Unified ICT offering, which redefines ICT service provisioning, has attracted organisations looking for more flexibility with their telecoms and computing infrastructure. By the same token, the wholesale business expanded its network reach to Russia, Turkey and Africa and won business with providers looking to outsource their network management.
Commenting on the results Gareth Williams, Interoute CEO, said, “Owning a pan-European Next Generation Network gives us a huge technical advantage. While other operators are struggling with upgrading their legacy networks or contending with capacity issues, we have been able to invest our time and resources in innovation. By building flexibility into the core of our computing and telecoms services, we are providing organisations with the flexibility to move, add and change their service requirements at any time without penalty. For a business this means agility, and agility delivers a competitive edge.”
Interoute’s Unified ICT portfolio covers computing, connectivity and communications. Its Unified Connectivity offering has proven attractive to organisations looking for a scalable, secure and unconstrained connectivity platform on which they can build their voice, computing and data services, with 280 site installs taking place. In May, the European Space Agency turned to Interoute to create an internal content distribution network to connect its Earth Observation Payload Data Systems across 14 sites in Europe and Canada.
Interoute’s pan-European network links to 100 cities in 29 countries covering the European Union, from London to Warsaw, Stockholm to Sicily and beyond into the emerging economies of South-eastern Europe and Africa. Combined its 8 data centres and 32 collocation facilities, Interoute has Europe’s largest fibre and duct reserve, providing it with the ability to meet the rising demand for capacity fuelled by video and rich content.