Following the release of Telecity’s FY12 results last week, we caught up with CEO, Michael Tobin. To re-cap on the headline numbers: Group revenue increased 18% on FY11 to reach £283m. Operating profit climbed to £84.2m, taking the margin up from 27.3% to 29.8%. In the UK, revenue increased 16.9% to £137.5m and the operating margin improved from 29.7% to 32.2%.
Telecity is nestled in a high growth segment of the infrastructure services market (colocation data centres). Firms that specialise in providing comparable services have also enjoyed strong profitable growth in the recent past. For example, Iomart (FY11 hosting revenues +21% to £24.4m), Interxion (FY11 +28% to £29.2m), and The Bunker (FY11 hosting and data centre services +21% to £6.9m). However, despite the clear demand for co-location and data centre services (in particular from telcos and mobile providers), succeeding in this market is not as straightforward as sitting back and waiting for the customers to roll in. TechMarketView subscribers can read the full note here.