ATM improves performance and may have a new investor
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ATM revenues in Q1 2019 increased thanks to data center services. The share of this segment in the company’s results is close to 50%. A new investor may appear in the company.
ATM sales growth in Q1 2019
In Q1 2019, ATM revenue grew by 6.6% to PLN 35.7 million. The company’s EBITDA amounted to almost PLN 17.2 million and was 72.5% higher than in the previous year. The share of revenues from data centers is approaching 50%. At the end of Q1 2019, the share of revenue from data centers increased to 48.5% as compared to 45% a year earlier. Subscription revenues account for 98% of ATM sales revenues.
15% higher revenues from data centers
According to the Management Board of ATM, the positive result in the first quarter was almost entirely due to the positive contribution of the data center services segment, where the value of generated revenues increased by more than 15% year-on-year, which was mainly due to the following factors
- maintaining over 10% growth rate of dedicated server services and a very dynamic growth of revenues from cloud computing services
- increase in revenues from subscriptions related to the so-called basic colocation services (Rack, Box, Data Room) by approx. 6%.
- increase in revenues from guaranteed power supply services by 38%. These services are an integral part of all basic services provided in data centers, and the increase in rates for the company’s customers resulted directly from the need to mitigate the equally significant increase in the market price of electricity purchased in 2018 (ATM contracts energy purchases in annual intervals, so the effect of price increases in the market has been visible in its results only since the beginning of 2019).
- The increase in electricity purchase costs is responsible for approximately 90% of the total increase in data center segment costs.
Forecast of results in 2019
The Management Board of ATM has also provided a forecast of the company’s financial results for 2019. The forecast for the period from January 1, 2019 to December 31, 2019 includes: ATM sales revenues of PLN 148 million and EBITDA of PLN 58.5 million. The key assumptions for the above forecast of the company’s results are as follows:
- the starting point for the forecast is the results achieved by the company in the first quarter of 2019, which were published as part of the quarterly report for the first quarter of 2019
- sales revenues were forecast based on the current level of post-paid revenues, taking into account signed but not yet invoiced contracts and modifications of contracts with customers, as well as sales and modifications of contracts with customers planned for the rest of the year with a high probability of being performed.
- the level of operating costs was forecast in detail based on the company’s budget assumptions, taking into account the current level of advancement of initiatives increasing the company’s cost effectiveness and the planned directions of sales development.
Possible change of ownership of the company
In April, the Management Board of ATM, headed by Daniel Szczęśniewski since March, did not rule out the possibility that the majority shareholder of the company might be interested in leaving the investment. This information was included as the beginning of the review of strategic options related to the further development of the business. During the review, the Board will consider various strategic options in relation to business areas, in particular, the search for acquisition targets, search for joint venture partners, search for strategic investors or carry out transactions with a different structure, as well as the analysis of how to use any assets or funds acquired and the lack of activities related to the above options. ATM also published similar information in May, this time informing that the above-mentioned actions will be taken by the majority shareholder of the company.
ATM is the data centre market leader
According to PMR’s latest report, “Data centre market in Poland 2019. Market analysis and development forecasts for 2019-2024″, ATM is the leader of the colocation services market in Poland. It has the largest data center resources and the possibility of further expansion.