Interoute bucks telecoms recession with record financial results

London, 12 November 2009 " 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."