24 Jul 2014 07:00
24 July 2014
Manx Telecom Plc
Pre-Close Trading Update
Manx Telecom Plc (AIM:MANX; the "Company"), the leading communication solutions provider on the Isle of Man, is pleased to announce its pre-close trading update ahead of its interim results for the six months ended 30 June 2014, due to be announced on 25 September 2014.
The Board confirms that trading during the first six months of the year is in-line with management expectations.
The Company's core domestic business has performed solidly during the period and it remains on track to increase availability of superfast VDSL broadband to 87% of homes and businesses by the end of 2014, up from 81% at start of May. In mobile, the roll out of the 4G network is on schedule with 95% population coverage and an official launch date of 29 July.
The Off-Island business continues to grow strongly with greater sales effort in the UK starting to show positive results. In particular, the strongest signal mobile roaming product Chameleon is seeing good traction with a wide range of critical markets including lone workers and the emergency services, with the M2M business also showing good year-on-year growth.
Phase one of the new £10m Tier 3 Greenhill Data Centre was completed in March and the first customer is now live in the centre. Negotiations continue with a number of interested parties over acquiring additional space.
On 13 June, it was announced that PokerStars, an important data centre customer, had been acquired by Canadian gambling equipment maker, Amaya Gaming Group Inc. The Board believes that the sale of PokerStars to an overseas company will not be a significant threat to the Isle of Man operation and may present further opportunities if Amaya seeks to invest in PokerStar's growth.
As set out in the Company's admission document, the Board intends to pay a full year dividend for 2014 calculated as a 7% yield on the IPO placing price of 142p per share. In line with this intention, the Company intends to declare a maiden interim dividend at the half year results, payable in November 2014.
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About Manx Telecom Plc ("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 solutions to offshore 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 services are expected to be launched in the summer of 2014, while the Company's high speed VDSL broadband service (Ultima) is available to over 80 per cent. of homes on the island.
• The Company has two Tier 3 data centre and 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 over 280 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 Isle of Man has a resilient and growing economy which has experienced 29 years of unbroken GDP growth. Unemployment is low at approximately 2.4 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 trades on the Alternative Investment Market of the London Stock Exchange with the ticker MANX.