TECHNOPOLIS PLC INTERIM REPORT October 30, 2014 at 8:00 a.m.
Technopolis Group Interim Report January 1 - September 30, 2014
Profitable Growth Continued
Key figures 1-9/2014 compared with 1-9/2013
- Net sales up by 31.3% to EUR 120.3 (91.6) million
- EBITDA improved by 38.3% to EUR 65.3 (47.2) million
- Financial occupancy rate unchanged at 93.5 (92.0)%
- Earnings per share were EUR 0.14 (0.14), including changes in fair value and unrealized exchange rate losses
- Fair values down EUR -16.1 (-13.0) million
- Unrealized exchange rate losses totaled EUR -5.4 (-3.9) million
- Direct result (EPRA) rose 33.5% to EUR 39.2 (29.3) million
- Direct result per share (EPRA) was EUR 0.37 (0.35)
- Net asset value per share (EPRA) was EUR 4.89 (5.02)
The acquisitions completed in 2013 and investments in campus expansions accelerated business growth significantly, resulting in net sales growth of 31.3%. Technopolis has been able to maintain cost effectiveness with EBITDA growing 38.3% and expenses 20.9%.
| 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | |
| Key Indicators | 2014 | 2013 | 2014 | 2013 | 2013 |
| Net sales, EUR million | 40.3 | 30.8 | 120.3 | 91.6 | 126.3 |
| EBITDA, EUR million | 22.7 | 17.1 | 65.3 | 47.2 | 64.1 |
| Operating profit, EUR million | 16.0 | 9.9 | 46.4 | 32.3 | 43.9 |
| Net result for the period, EUR million | 8.2 | 5.1 | 25.0 | 15.6 | 31.6 |
| Earnings/share, EUR | 0.06 | 0.04 | 0.14 | 0.14 | 0.30 |
| Cash flow from operations/share, EUR | 0.47 | 0.37 | 0.53 | ||
| Equity ratio, % | 40.6 | 39.4 | 40.2 | ||
| Equity/share, EUR | 4.60 | 4.55 | 4.66 |
Earnings and balance sheet figures per share have been share-issue adjusted.
| EPRA-based | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| Key Indicators | 2014 | 2013 | 2014 | 2013 | 2013 |
| Direct result, EUR million | 14.1 | 10.8 | 39.2 | 29.3 | 40.5 |
| Direct result/share, diluted, EUR | 0.13 | 0.13 | 0.37 | 0.35 | 0.47 |
| Net asset value/share, EUR | 4.89 | 5.02 | 4.94 | ||
| Net rental yield, % | 7.3 | 7.6 | 7.6 | ||
| Financial occupancy rate, % | 93.5 | 92.0 | 93.6 |
The EPRA-based (European Public Real Estate Association) direct result does not include unrealized exchange rate gains or losses or fair value changes.
Keith Silverang, CEO:
“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 occupancies, 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 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.”
Full version of Technopolis Plc’s interim report January 1 – September 30, 2014 attached.
Additional information:
Keith Silverang
CEO
Tel. +358 40 566 7785
Distribution:
NASDAQ OMX Helsinki, main news media, www.technopolis.fi
About Technopolis:
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.
