30 June 2006
IXEurope Half Year Trading Update
IX Europe plc (“IXEurope”, “the Company”) (AIM: IXE), one of Europe's largest and fastest growing datacentre outsourcers with 12 IXDatacentres across four countries, is providing an update on trading for the six months ended 30 June 2006.
Trading has been in line with the Board's expectations, both in terms of revenue and EBITDA following the Company's listing on AIM in April. Contracted MRR (Monthly Recurring Revenue) has increased from �2.0m as at December 2005 to �2.5m (�0.1m of the increase relating to power revenues) as at 31 May 2006. IXEurope intends to release its interim results for the six months to 30 June 2006 in September 2006.
The Company continues to experience strong demand growth from both of its key sectors; large enterprise and major web business. A number of important contracts have been signed in the six months, including Orange Business Services, a major international internet company, and a substantial global outsourcer.
The Company has also announced today a significant contract win with a Big Four consultancy. The initial contract value is approximately �15m over 10 years (excluding power revenues) - see separate statement.
The sales pipeline remains strong in all four countries with significant latent demand in the UK and the Board remains confident that the trading environment will continue to be healthy during 2006. The Board will continue its strategy of leveraging the current capacity for future growth as well as seeking expansion by acquisition where appropriate.
In response to these continuing positive customer demand trends seen since the listing on AIM, the Board has decided to adjust its capital expenditure profile for 2006 and 2007. IXEurope expects to bring forward �1m of investment from 2007 to 2006 in order to increase capacity at its Paris hosting centre. A further �1m is expected to be spent in 2006 to enable IXEurope to take advantage of additional electrical power upgrades at both Paris and London 3. These upgrades enable IXEurope to significantly raise prices to customers through enhanced infrastructure and service. Due to the long lead times in the business, the changes to the capital expenditure profile are expected to have a positive impact on revenue and EBITDA from 2007 onwards.
Since the Company listed on AIM, a new IXDatacentre has been acquired in Munich on 19 April and a further substantial site secured to the West of London (London4) on 13 June, whilst in Paris, work has started on increasing the capacity of the existing IXDatacentre. These substantial additions will underpin the Company's future growth.
The Munich facility is now generating a small positive contribution following the signature of a significant anchor client simultaneous to the acquisition. London4, six miles west of Heathrow, will be the Company's largest London facility. The �15m capital expenditure for the London4 building shell and first floor fit-out is expected to be �1m in 2006, �8m in 2007 and �6m in 2008. The site is now under construction and is expected to generate revenue in late H1 07.
For further details
Karen Bach, Chief Financial Officer
020 7689 1400
Adrian Duffield/Corinna Dorward
020 7457 2020
IXEurope is one of Europe's fastest growing providers of datacentre services. Its principal activities include primary datacentre services, connectivity services and business continuity solutions.
IXEurope works with enterprise and internet customers to provide resilient datacentre infrastructure to house their IT systems far more cost-effectively than through in-house provision. The benefits include optimised IT performance, improved systems availability and reduced corporate risk through improved regulatory compliance. By continually focusing on quality, IXEurope also gives clients exceptional service levels and on-site access to a high level of technical expertise.
With award winning datacentre facilities in key European cities, broad technology expertise and a proven track record, IXEurope provides solutions that give customers the confidence that their operations are protected. The Company has over 400 customers in the enterprise, internet and networking markets including Merrill Lynch, Google, Network Rail and France Telecom.
Founded in 1998 by Guy Willner and Christophe de Buchet, IXEurope was listed on the London Stock Exchange in April 2006.
For more information please visit the website at www.ixeurope.com
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of IXEurope into Equinix; a failure to receive significant revenue from customers in recently built out data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; the results of any litigation relating to past stock option grants and practices; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
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