Cordiant Digital Infrastructure Ltd (LSE:CORD) has reported a near 10% rise in quarterly revenue and earnings across its portfolio, highlighting progress on new projects in data centres, fibre networks and broadcasting.
The investment trust said revenue for the three months to June 30 reached £85.3 million, up 9% on the same period a year earlier.
Earnings before interest, tax, depreciation and amortisation, a standard measure of cash profits, rose 9.6% to £41.3 million.
Cordiant, which invests in digital infrastructure such as data centres, fibre and telecoms, said the uplift was driven by new contract wins, cost control, inflation-linked price rises and the addition of Belgian operator Datacenter United, which joined the portfolio in March.
Among the operational highlights, CRA, its Czech telecoms subsidiary, secured final permits for a 26-megawatt data centre in Prague and began groundworks in July.
The unit’s digital radio network, expanded earlier this year to reach more than 80% of the Czech population, was fully let during the quarter.
In Ireland, Speed Fibre completed the acquisition of BT Communications Ireland at the start of September, cementing its position as the country’s leading alternative wholesale network provider.
Cordiant also raised €20 million by selling part of its stake in Datacenter United to a co-investor, a move intended to support future growth.
The company said available liquidity stood at £218 million at the end of June, with net leverage of 4.6 times earnings, which it described as prudent compared with industry peers.
The board reiterated its target dividend of 4.35p a share, which it said was covered 1.7 times by cash flow and 4.7 times by portfolio earnings.
Shonaid Jemmett-Page, chair, said: “Portfolio performance remains robust, with revenue and EBITDA growth clearly reflecting the investment manager’s active and disciplined approach.
"Despite this, the board remains disappointed by the current share price, which continues to trade at an unjustified discount to NAV.”
Steven Marshall, executive chairman of Cordiant Digital Infrastructure Management, added: “The platform has evolved into a more diversified and scalable business, and we remain focused on executing our Buy, Build & Grow strategy to generate long-term capital appreciation and support a progressive dividend policy.”