Profitable Growth Continues
TECHNOPOLIS PLC PRESS RELEASE October 30, 2014 at 8:10 a.m.
Profitable Growth Continues
In January–September Technopolis’ EPRA-based (European Public Real Estate Association) direct result rose by 33.5% from 29.3 million euros to 39.2 million euros compared to 2013. The direct result per share rose from 0.35 euros to 0.37 euros. Net sales rose 31.3% from 91.6 million euros to 120.3 million euros and EBITDA by 38.3% from 47.2 million euros to 65.3 million euros. At the same time expenses rose 20.9% which resulted an increase in EBITDA margin from 52.5% to 54.3%. The financial occupancy rate was sequentially flat at 93.5% and rose 1.5 percentage points compared to the corresponding period in 2013.
Technopolis’ CEO Keith Silverang:
“Technopolis continued its solid performance in the third quarter with both net sales and EBITDA showing significant growth while the balance sheet and occupancy rate remained strong.
While the economic outlook in Finland remains sluggish and in Russia it is weakening, the Baltic countries and Norway are seeing sustained moderate economic growth. In this situation, we need to focus sharply on customer satisfaction, excellent service and a proactive sales strategy.
In the past, we have excelled in challenging conditions, whether the challenges involved occupancy, customer satisfaction or financial performance. In St. Petersburg, we have achieved major improvements in the occupancy rate and rental rates of Pulkovo 2. Russian business operations account for 6% of the company’s portfolio. The occupancy rates in Vilnius and Tallinn are very high, and we are poised for profitable growth going forward. In Finland, we have been able to maintain our higher-than-market occupancy rate.
Our strategy focuses on international expansion, service business growth and property portfolio development. Our objective is to lower the net sales generated in Finland, currently approximately 70% of the total, and to seek stronger international growth. In Finland, we will limit operations focus on campuses with high growth potential. We will divest non-core properties in Finland – the 22,000 m² Lentokentäntie property in Oulu, sold in September at fair value, being a case in point.
We are confident that we will able to reach the financial targets set for this year.”
Tel. +358 40 566 7785
Technopolis provides the best addresses for companies to operate and succeed in five countries in the Nordic-Baltic region. The company develops, owns and operates a chain of 20 smart business parks that combine services with flexible and modern office space. The company’s core value is to continuously exceed customer expectations by providing outstanding solutions to 1,700 companies and their 40,000 employees in Finland, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.