Final results from Cordiant Digital Infrastructure Ltd (LSE:CORD) were "solid" said broker Stifel, boosted by the in-year acquisition of Emitel.
Emitel revenues rose 13% and earnings (EBITDA) climbed 7%; CRA, the second-largest asset, grew revenues 2% and EBITDA 17%; while US data centre business Hudson revenues grew 9% its EBITDA losses increased 53% to US$5.3m as sales conversions took longer than expected.
Cordiant's overall profits increased by £81.2mln in the year, of which £46mln represented a gain in fair value and £44mln of positive FX movements, which Stifel expects to be maintained as sterling has weakened against the Polish zloty post March, but strengthened against the Czeck krona.
Of the £46m gain in fair value, £48mln was driven by Emitel, £8mln by CRA with a £10mln loss against Hudson.
Discount rates at CRA and Hudson were each increased by 36 basis points.
"The balance sheet of the fund remains healthy and the dividend cover is also strong at 1.5x," analysts wrote, adding that they think "the narrative needs to be much clearer as the dividend yield of 5.1% is insufficient to lead to a re-rating of the shares without a clear revenue growth story".