Interoute bucks telecoms recession with record financial results
Continued growth of Europe’s largest next generation network transforms business to self-funding enterprise
London - Interoute Communications Ltd, owner operator of Europe’s largest next-generation network, today announced EBITDA of €22.7m for the first six months of 2009, a 155% increase over 2008. Despite the deep recession that has seen a decline in growth for many operators in the telecommunications industry, Interoute has increased its revenues by eleven per cent during January to June 2009 to report €129m. By accelerating at this rate, Interoute has become operationally cash-flow positive and is now a self-funding enterprise.
Since completing the largest pan-European fibre optic network in 2003 to provide enterprises and the wholesale carrier market with a portfolio of innovative services and next generation connectivity, Interoute’s revenues have increased at a compounded annual growth rate (CAGR) of 57%, making today’s revenues 15 times greater than six years ago. Despite a 400% growth in the number of lit fibre kilometres across the network to meet customer demand, Interoute’s operating costs have only doubled and network costs have remained flat since 2003.
Commenting on the results Gareth Williams, Interoute CEO, said, “We are particularly proud to have taken Interoute to operational profitability during this global recession at a time when other operators are seeing their growth rate stagnate or decline. More broadly, to have built a successful communications company following the collapse of the telecoms boom at the beginning of this decade, proves that our unique approach to building a pan-European fibre backbone has paid off.”
Interoute is the only next generation network covering the European Union, from London to Warsaw, Stockholm to Sicily and beyond into the emerging economies of Southeastern Europe as well as linking to North America’s major telecoms hub through its transatlantic capacity. The network serves as a global bridge between the North and South and East and West. With seven subsea landing stations ringing the edge of Europe, Interoute acts as the European link for operators from the Middle East, Africa and North America.
Interoute’s network also reaches deep into the heart of Europe’s metropolitan networks, with a presence in 21 urban hubs, as well as being connected to the Arab world’s most dynamic international hub, Dubai, via a fully operational Point of Presence. And with the Company’s 59 data centres located across the European footprint, Interoute is a leader in the deployment and hosting of Cloud computing applications for industry.
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Interoute is the owner operator of Europe’s most advanced and densely connected voice and data network, encompassing over 57,000 kms of lit fibre and 59 data centres. Its full-service next generation network serves more than 12,000 customers across a broad range of sectors from finance to retail and every major European incumbent, as well as the major operators of North America, East and South Asia, governments, universities and research agencies. These organisations find Interoute the ideal partner for hosting content, providing wholesale transit services, corporate access or creating new services. With established operations throughout mainland Europe, North America and Dubai Interoute also owns and operates dense city networks throughout Europe’s major business centres. More than €1 billion in e-commerce transactions flows through its data centres each day, making Interoute a key part of Europe’s Digital Supply Chain. www.interoute.com
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