|ATM S.A. increases its revenue and profitability|
Polands largest data center operator has reported total revenue of 31.5 million zloty from its core operating segments in the third quarter. This represents a rise of 6% over the same period last year. ATM has also increased its profit on sales to 17.5m zloty, a year-on-year rise of 4%.
In the third quarter of this year the companys sales have increased markedly compared with the previous year, with revenue totaling 31.5m zloty. Its results have improved in both core segments. Revenue from data center services rose by 16% (this segment now accounts for about 60% of the companys EBITDA), while for the first time in several quarters an increase was also reported in revenue from telecommunications services. In that segment sales were up by 1% year-on-year.
The company has also been able to halt the downward trend in the profitability of its telecom services. Its profit margin on subscription revenue increased from 45% in the second quarter of this year to 47% in the third. Moreover, there is an increase in the share of revenue coming from subscriptions, which now account for 97% of total revenue in the core segments.
The overall profit on sales in the reporting period stands at almost 17.5m zloty. This represents an increase of 4% compared with the same period last year.
The improved results are an effect of the changes that we have been introducing systematically since the start of the year in the areas of sales and marketing. In the third quarter we achieved an increase of about 100 square meters in net commercialized colocation space, as well as a significant increase in sales of dedicated servers under the ATMAN EcoServer brand. However, the rate of growth in revenue from data center services is still not satisfactory. We are currently engaged in advanced negotiations concerning further contracts for large amounts of colocation space, which can be expected to increase that rate of growth significantly. The simultaneous optimization of purchasing processes will lead to constant growth in profitability, thus generating greater and greater profits for shareholders, argues Tadeusz Czichon, CEO of ATM S.A.
According to its strategy announced this spring, ATM S.A. intends to increase its sales to foreign customers (which are expected to account for 2535% of total revenue) and its EBITDA figure, which is planned to reach at least 60m zloty in 2017. Measures to help achieve this include the launch of new products connected with data center services, particularly those concerned with IT security.
Both our own research and that carried out by analytical firms show that businesses are increasingly aware of the dangers associated with loss of access to data. In an era of growing cybercrime and the development of the technologies of the Internet of Things and Big Data, data centers have a huge role to play in ensuring an adequate level of security, explains Jacek Krupa, Vice President of ATM S.A.
According to reports published by PMR Research, ATM S.A. is the leader in the Polish data centers market (in terms of gross colocation space), and also takes third place in the whole of Central and Eastern Europe (by the same criterion).
On 1 December, the companys CEO Tadeusz Czichon, its co-founder, who has been at the helm for 26 years, hands over to Dariusz Terlecki, a manager who for many years has held sales and senior management posts at large service companies, including in the telecom and IT sectors. The Supervisory Board has decided that the companys current state of development creates a favorable situation for placing the management of the company into new hands. Personally, as a shareholder and someone who has been emotionally linked to the company and its team from the very start of its existence, I will support the actions of the new management board and observe attentively the continued development of ATM. From Supervisory Board level, if the shareholders express such a wish, said Tadeusz Czichon.