GTS posts solid results in 2010
Warsaw, May 9, 2011
GTS Central Europe (GTS), a leading provider of integrated telecommunications services in the region, announced its financial results for 2010. The company managed to achieve its highest earnings before taxes, interest, depreciation and amortization (EBITDA) in its history. While investing heavily in network expansion and product development, the company continued its long track record of producing free cash flow.
The highlights of its consolidated 2010 financial results are:
· Revenue of €387 million accompanied by growth in gross margin as well
· EBITDA of nearly €91 million representing a greater than 23% margin
· Free cash flow (EBITDA less capital expenditures) of €42 million representing 6% growth over the prior year
“I am pleased GTS has experienced continuous growth in our key financial measures. Our focus and discipline has allowed us to invest significant capital in the business while maintaining one of the best balance sheets in the industry. Using our strong free cash flow, we complemented our core business with a few strategic acquisitions in 2010 which expanded our customer base, network and product offering in several markets,” said Gerald Grace, CFO, GTS.
In 2010, as compared to prior year results, GTS improved gross margin, EBITDA and free cash flow in terms of both actual results and margin. The higher profitability is primarily the result of a shift towards higher margin, more complex services which leverage the company’s fiber and data center infrastructure. Several multi-national corporations became new GTS customers in 2010 and now rely on the company for services critical to their business applications.
“Building upon its unique network, GTS has made tremendous progress in both unifying its services and deploying new products throughout the region. The capital expenditure investment in 2010 not only introduced leading-edge Ethernet services, but it also added nearly 500 buildings to our owned and operated fiber network. With continued focus in 2011 on serving our customers across all business units, we will perform even better,” said Danny Bottoms, CEO, GTS.
About GTS
GTS Central Europe is a leading infrastructure-based provider of 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. With a rich operating history of nearly 20 years in CEE, the company is committed to providing service excellence and value to its nearly 40,000 business, carrier and government customers. For more information, please visit us at www.gtsce.com
