GTS Central Europe 2009 financial results
Date: 10-03-2010
March 3rd, 2010 - GTS Central Europe (GTS CE) 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, 12% decline from previous year
• EBITDA of €86.0m, 11% growth over previous year
• EBITDA margin of 22%, compared to 18% for previous year
• Cashflow (EBITDA less capex) of €39.6m, 40% growth over previous year
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. While total revenue declined due to
the divestment of non-core business lines, declining legacy voice products, and weaker local
currencies compared to 2008, GTS CE continued profitable growth in our core data and managed
service products.
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:
“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
