Hosting revenues boost Macquarie Telecom guidance

ASX -listed managed Macquarie Telecom has raised its earnings guidance to $20 million for the half year ending 31 December 2010.

The expected result would exceed the company's previous EBITDA earnings guidance of between $15 million and $17 million.

Chief executive David Tudehope said the company experienced strong demand for its hosting services.

The company also has a telco division which offers IP network, voice and mobile services.

“We believe the trend of outsourcing is accelerating due to the higher speed internet connectivity driving web technology and the associated demand for managed hosting," Tudehope said.

“The emergence of cloud computing, which is a natural extension of hosting, will increase this trend and provide new market opportunities". 

The company announced the availability and pricing of what it terms its cloud computing service last week.

The full year financial results were now expected to be between $37 million and $39 million, a 30 percent increase. 

The half results are due for release on February 24.