GTS Central Europe 2009 financial results
March 3, 2010
GTS Central Europe (GTS CE) today announces its results for the full year ending 31 December 2009, reporting the highest EBITDA and cashflow since the Group was founded over 16 years ago. The company continues revenue growth in high margin data and data center products.
Highlights:
- Revenue of €384.5m
- EBITDA of €86.0m
- EBITDA margin of 22%
- Cashflow (EBITDA less capex) of €39.6m
GTS CE continues to exhibit strong financial and operating performance in the face of a challenging economic environment. Since the company became cashflow positive in 2005, EBITDA and cashflow have grown at a compound annual growth rate of 17% and 50%, respectively. Increased profitability reflects a product mix shift towards the higher margin data and managed service product lines and a continued emphasis on cost control and efficiency improvements.
Adam Sawicki, Chief Executive Officer, commenting on the results, said: “I am very pleased with the results achieved in 2009. We completed our operational restructuring, establishing seven customer-focused business units. The newly created International Services and Wholesale Voice regional business units can take advantage of our unique operating scale and network to better serve the data and voice requirements of our regional carrier customers, while the five domestic business units focus on our in-country corporate customers. The new business unit structure, combined with the establishment of a regional procurement function and international network management center, has resulted in improved service to customers and increased efficiency, visibility and accountability across the company.”
Gerry Grace, Chief Financial Officer, commented: “While total revenue declined due to the divestment of non-core business lines, declining legacy voice products, and weaker local currencies compared to 2008, we continued profitable growth in our core data and managed service products. Year 2009 was very successful for us as we achieved significant contract wins despite the weak macro-environment. This included the largest contract in the company’s history with an associated revenue of €8.5m. With an improving macro-environment and streamlined business model, the company is well positioned for profitable growth in the future”.
About GTS
GTS Central Europe is a leading provider of integrated telecommunications services in Central and Eastern Europe. GTS owns and operates an extensive fiber optic and data center network throughout the region. In the Czech Republic, Hungary, Poland, Romania and Slovakia, the company combines its regional footprint with deep local networks to deliver a broad range of services. From basic voice and data to complex virtual private networks and managed data center services, GTS assembles the latest technology with its extensive network to provide industry-leading customer solutions. Wit a rich operating history of nearly 20 years in CEE, the company is committed to providing service excellence and value to its 30,000 government, carrier and business customers. GTS is owned by a consortium of leading international private equity firms with extensive experience in the communications and technology industries. For more information, please visit us at www.gtsce.com.
