Strong demand for Cloud services, bandwidth and infrastructure grew Interoute’s top-line revenues to €366 million for the year

London, 23 April 2012 – Strong demand for Cloud services, bandwidth and infrastructure grew Interoute’s top-line revenues in 2011 to €366 million for the year, a 24% increase over the same period in 2010. Interoute Communications Ltd, owner and operator of Europe’s largest cloud services platform, boosted EBITDA by 16.5% to €68m. Despite substantial investments in new services and expanded infrastructure, the Company increased profitability, to €7.6 million.

Interoute has augmented its core internet infrastructure, expanding its range of Cloud services for the enterprise that now account for a majority of the Company’s revenues (55%, €204 million). Known as Unified ICT, the strategy launched in 2009 and anticipated and responded to the market’s needs by offering connectivity, computing and communications over its pan-European network on a flexible cost model - the Interoute Cloud. Most recently, at the start of 2012, Interoute launched its new Virtual Data Centre, which enables organisations to deploy virtual computing and storage infrastructure for their enterprise applications in a matter of minutes and brings simplicity and security to the enterprise cloud.

Interoute’s innovative enterprise services have attracted a host of high profile customers, including Deutsche Post, SCA, UEFA and Tieto. Growth in its enterprise business was also aided by the strategic acquisition of Visual Conference Group (VCG), a leading European video conferencing provider, at the start of 2011. This added video as a service to Interoute’s existing Unified Communications portfolio and attracted new customers for both video and network services. In Q4 Interoute also augmented its Cloud services portfolio through the acquisition of an Application Management business, formerly known as Quantix, and by launching its online Cloudstore.

Interoute’s Service Provider business, which currently accounts for 45% of its revenue, was driven by growth in the submarine cable industry and increasing demand for bandwidth and fibre, a direct result of the increasing need for high-capacity video and applications, from both the consumer and business market.

In Q1 2011, Interoute became the core fibre optic network provider for Western Europe for Telefónica International Wholesale Services (TIWS). In Q2 Interoute also signed a European Network Agreement with Gulf Bridge International (GBI), providing GBI with access to Europe via Interoute’s advanced fibre optic network.

Gareth Williams, Interoute CEO, commented “Our strategy is to provide innovative, competitive Cloud services to the enterprise market and to retain our place as the preferred provider of internet infrastructure across the European footprint – as these are the two drivers of our growth. Today, as video, data and Cloud computing gain momentum, Interoute is perfectly positioned to serve national and international enterprises, as well as the service providers who connect the world. With ownership of Europe’s largest private Cloud infrastructure, innovation is as deeply embedded into our culture as the infrastructure upon which we have built the Company.”

Joel Stradling, Principal Analyst, Business Network and IT Services, Current Analysis, commented: “Interoute's sales growth is driven by a double-pronged approach that combines an abundance of capacity and high-speed infrastructure with relevant cloud and connected IT services. We expect the carrier to continue to gain traction due to the fact that it has no legacy network baggage and adopts refreshingly novel commercial strategies around how companies can buy connectivity, computing and IT services.”