Flying start to 2017 for Retelit
30 March 2017Press releases
Bolstered by the 2016 results - ahead of expectations and featuring its first ever operating profit - the company outlines the objectives for the current year, focusing on connectivity, new services, industrial areas and international expansion
Revenues of Euro 49.6 million, up 17.8% on the previous year, EBITDA of Euro 14.6 million and a net profit of Euro 2.9 million (Euro 0.2 million in 2015), calculated on a like-for-like basis, in addition to significant operating result improvements - the first operating profit in the company’s history at Euro 2.2 million. This is the 2016 result for Retelit. In addition, the company invested nearly Euro 35 million in infrastructural development.
The Chairman Dario Pardi expressed his satisfaction with this achievement: “The numbers speak for themselves, although the key accomplishment is the delivery of an operating profit for five consecutive quarters, for the first time in the Group’s history. The consequent boosting of our market share enables us to look to the future with even more optimism - both in revenue and earnings terms”.
The 2017 objectives are even more ambitious, with a revenue improvement of between 20% and 26% targeted and, particularly, an EBITDA improvement of 45%. In addition, investment of slightly less than Euro 90 million is forecast for the 2017-2021 five-year period.
The new year has got off to a flying start and Retelit is already on target to meet its highly-defined objectives to satisfy, on the one hand, the demand for ultra-broadband from producers and - particularly - distributors of high definition audio and video content, and on the other the Cloud and connectivity demands of businesses.
Two macro areas in which Retelit will further increase investment and an undoubtedly validated strategy also considering the major shift towards digital transformation in the public and private sectors and also among end users, increasingly or directly involved through the use of content (e.g. 4k) and the Internet of Things.
With an increasing focus on mid-size businesses, in 2017 Retelit will target industrial areas with its connectivity offer - the true heart of the Italian economy - not focusing on any specific vertical sector, but all those businesses which still find it impossible to undertake the digital transformation to make them more competitive than their counterparts (including those based overseas).
“Our objective is to go beyond the simple provision of connectivity. Our choices are focused on the proposal of integrated solutions whereby, as a technological partner, we are able to ensure oversight of the entire chain - from services to data centers to connectivity” added Federico Protto, Chief Executive Officer and General Manager of Retelit.
The business services offered by Retelit range from connectivity in the order of Gigabites per second to VPN services; from housing, hosting and Cloud solutions through the network of 15 owned data centers, to carrier ethernet technologies and the very low latency OTN (Optical Transport Network) network. Without forgetting the major investments also in recent times in hyper convergence technologies which guarantee extreme scalability and flexibility in the use of computing capacity, RAM and storage.
The partnerships signed with strategic and closely selected partners, hosted within our data centers, contributed considerably to the numbers delivered in 2016, enabling us - as part of a tendency among companies to do business with affirmed market players - to offer clients both higher technological and commercial quality levels.
Thanks to this strategy - and the massive advantage of being able to rely on a single provider rather than a range of different entities depending on the service required - any private or public entity can envisage Retelit as the perfect response to their growth and innovation needs. This is evident in what can be delivered - primarily, the possibility to construct personalised solutions which at the same time are extremely competitive and efficient.
“This strategy launched two years ago and focused on consolidating the wholesale market and development of business and cloud operations has proven to be a winning formula and our cohesive and determined team has delivered improved results which even outstrip plan objectives” stated Pardi.
2017 represented a major milestone also for Retelit internationally: “We are working on the entry into use over the coming weeks of the AAE-1 submarine cable, a 25,000 kilometer fiber optic connection between the Mediterranean and the Middle and Far East, as far as Hong Kong. The cable opens up new and major business opportunities for us and international markets and areas of very high development, such as for example, India, South-East Asia, China and Hong Kong. The beginning of commercialisation and the signing of the first contract with BICS, (Belgacom International Carrier Services), a global telecommunications offer, confirms the strategic correctness and potential of the investment” concluded Protto.