MANX.L Regulatory News (MANX)

13 July 2016

Manx Telecom Plc

Pre-Close Trading Update

Manx Telecom Plc (AIM:MANX; the "Company"), the leading communication solutions provider on the Isle of Man, announces its pre-close trading update ahead of its interim results for the six months ended 30 June 2016, due to be announced on 13 September 2016. 

The Board confirms that trading during the first six months of 2016 has been in line with management expectations.

Revenue ended the six months marginally behind the same period last year, due to an expected reduction in low margin kit sales. EBITDA performance ended in line with the same period last year and free cash flow grew year on year.

The Company's core domestic business of Fixed Line, Broadband, Data and Mobile have performed solidly during the period. Availability of high speed Broadband services continues to grow, now reaching 91% of premises and take up continues to expand with 35% of our broadband customer base now on VDSL or VDSL+.

Our 4G network continues to perform well with 99% of the population able to enjoy speeds up to 10 times faster than 3G services. Our adoption rates of 4G continue to grow steadily across both pay as you go and contract bases.

We have seen lower revenue levels in our data centre business due to a decline in low margin kit sales and a decline in data centre usage, which has been driven by some customer consolidation. This revenue reduction has been largely offset by a return to growth in our Global Solutions business, with all product lines showing growth.

As stated, cash generation remains strong, driving a further reduction in net debt, when compared to the same period last year.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/ 2014.

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About Manx Telecom

· Manx Telecom is the leading communication solutions provider on the Isle of Man, offering a wide range of fixed line, broadband, mobile, and data centre services to businesses, consumers and the public sector on the Isle of Man as well as a growing portfolio of innovative hosting and "Smart SIM" solutions to off-Island customers.

§ Manx Telecom has a record of innovation, being the first European operator to launch a 3G mobile service and the first in the world to launch a 3.5G mobile service. 4G service launched in the summer of 2014, and it is now available to contract and pre-pay customers with 99% population coverage. The Company's high speed VDSL broadband service (Ultima) is available to 91 per cent of homes on the Island. A VDSL Plus service launched in February 2015.

§ The Company has three data centres (two of which are Tier 3 designed) plus international connectivity and its operations are business-critical to the economic strategy of the Isle of Man.

§ One of the largest employers on the Island, Manx Telecom employs nearly 300 people. The company plays a major role in the wider community through a range of activities, including charitable donations, sponsorships, and corporate social responsibility initiatives.

§ The company is proud to sponsor the Manx Telecom Parish Walk, Tough Mann Adventure Challenge, Manx Telecom End2End Mountain Bike Challenge, Team Manx Telecom (Manx Road Club), and Royal Manx Agricultural Show as well as other smaller events. Manx Telecom also donates annually to local causes through the company's "It's our Community" programme.

§ The Isle of Man has a resilient and growing economy which has experienced 31 years of unbroken GDP growth. Unemployment is low at 1.9 per cent, and there is a zero per cent corporate tax rate which applies to the vast majority of Manx Telecom's business and means that the Group currently pays no corporation tax on its annual profits.

§ Manx Telecom is listed on the Alternative Investment Market of the London Stock Exchange with the ticker MANX.