10. 05. 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 millionrepresenting 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.