Interoute turns first profit

European fiber network operator Interoute has declared itself to be more a technology company than a telco, after strong demand for unified and cloud computing services in 2010 helped it to its first annual net profit.
 
The firm attributes a 46% leap in EBITDA to €58 million to high demand for a new unified ICT service introduced during the year, and expansion of existing services into Russia, Turkey and Africa. The increased business resulted in 10% growth in revenues to €295 million, and will spur the firm’s expansion by acquisition strategy moving forward.
 
Chief executive Gareth Williams said the “pivotal” results show the firm is now more about technology than “traditional telco” services, with a growing number of customers looking for centralized control of their ICT infrastructure.
 
“The ownership of Europe’s largest cloud service delivery network gives us a huge advantage,” Williams states.
 
Interoute moved to strengthen its cloud portfolio in March by acquiring Visual Conference Group, Scandinavia’s leading telepresence services provider, while analysts in February claimed a deal to supply a DWDM network to Telefonica International Wholesale Services confirmed Interoute’s position as a leading service enabler.
 
The firm is also constructing an IPv6-compliant VoIP network in conjunction with Genband, with completion scheduled for 3Q11.