15% Full Year Revenue Growth

AMSTERDAM–(BUSINESS WIRE)–InterXion Holding NV (NYSE: INXN), a leading European provider of
carrier and cloud-neutral colocation data centre services, announced its
results today for the three months and full year ended 31 December 2018.

Financial Highlights¹

• Revenue for the fourth quarter and full year increased by 13% and 15%
  to €146.9 million and €561.8 million, respectively (4Q 2017: €129.9
  million; FY 2017: €489.3 million).
• Recurring revenue¹ for the fourth quarter and full year
  increased by 13% and 15% to €139.7 million and €533.1 million,
  respectively (4Q 2017: €123.4 million; FY 2017: €462.5 million).
• Net income for the fourth quarter and full year decreased by 18% and
  20% to €8.0 million and €31.1 million, respectively (4Q 2017: €9.7
  million; FY 2017: €39.1 million).
• Adjusted net income² for the fourth quarter decreased by
  26% to €7.8 million (4Q 2017: €10.6 million) and was flat for the full
  year compared to the prior year at €40.2 million.
• Diluted earnings per share for the fourth quarter and full year were
  €0.11 and €0.43, respectively (4Q 2017: €0.14; FY 2017: €0.55).
• Adjusted diluted earnings² per share for the fourth quarter
  and full year were €0.11 and €0.56, respectively (4Q 2017: €0.15; FY
  2017: €0.56).
• Adjusted EBITDA² for the fourth quarter and full year
  increased by 15% and 17% to €67.7 million and €257.8 million,
  respectively (4Q 2017: €59.1 million; FY 2017: €221.0 million).
• Adjusted EBITDA margin for the fourth quarter and full year was 46.1%
  and 45.9%, up 60 basis points and up 70 basis points, respectively (4Q
  2017: 45.5%; FY 2017: 45.2%).
• Capital expenditures, including intangible assets³, were
  €131.3 million in the fourth quarter and €451.2 million for full year
  (4Q 2017: €69.7 million; FY 2017: €256.0 million).

___________________________

* As previously reported, certain comparative figures for the three
months and twelve months ended 31 December 2017 have been restated
compared to the amounts disclosed on Form 6-K furnished on 7 March 2018.
For further details on the correction of this error, see Note 2 and Note
29 of our 2017 Consolidated Financial Statements included on Form 20-F,
filed with the SEC on 30 April 2018.

Operating Highlights

• Equipped space⁴ increased by 4,500 square metres in the
  fourth quarter and 22,300 square metres in the full year to 144,800
  square metres.
• Revenue generating space⁴ increased by 3,800 square metres
  in the fourth quarter and 15,200 square metres in the full year to
  115,000 square metres.
• Utilisation rate was 79% at the end of 2018.
• During the fourth quarter 2018, Interxion completed the following
  expansions:
  • 2,700 sqm expansion in Amsterdam;
  • 1,500 sqm expansion in Paris; and,
  • 300 sqm expansion in Frankfurt.

“Our highly-connected data centres continue to attract strong demand
from all customer segments, resulting in solid booking trends across our
European footprint,” said David Ruberg, Interxion’s Chief Executive
Officer. “The underlying drivers of this growth are secular in nature,
reflecting the widespread adoption of digital technologies by consumers
and enterprises alike. The cloud and content platforms continue to lead
the way, which in turn, require larger infrastructure capacities for
core and edge deployments. We are still in the early stages of this
transformation and believe there is a substantial opportunity ahead of
us.”

Quarterly Review

Revenue in the fourth quarter of 2018 was €146.9 million, a 13% increase
from the fourth quarter of 2017 and a 3% increase from the third quarter
of 2018. Recurring revenue was €139.7 million, a 13% increase from the
fourth quarter of 2017 and a 4% increase from the third quarter of 2018.
Recurring revenue in the fourth quarter represented 95% of total
revenue. On an organic constant currency⁵ basis, revenue in
the fourth quarter of 2018 was 13% higher than in the fourth quarter of
2017 and 3% higher than in the third quarter of 2018.

Cost of sales in the fourth quarter of 2018 was €57.2 million, a 17%
increase from the fourth quarter of 2017 and a 2% increase from the
third quarter of 2018.

Gross profit was €89.7 million in the fourth quarter of 2018, an 11%
increase from the fourth quarter of 2017 and a 4% increase from the
third quarter of 2018. Gross profit margin was 61.1% in the fourth
quarter of 2018, compared to 62.4% in the fourth quarter of 2017 and
60.7% in the third quarter of 2018.

Sales and marketing costs in the fourth quarter of 2018 were €9.5
million, a 5% increase from the fourth quarter of 2017 and a 9% increase
from the third quarter of 2018.

General and administrative costs, excluding the items we adjust for in
the determination of Adjusted EBITDA, were €12.5 million in the fourth
quarter of 2018, a 3% decrease over the fourth quarter of 2017 and a 6%
increase from the third quarter of 2018.

Depreciation and amortisation in the fourth quarter of 2018 was €34.3
million, an 18% increase from the fourth quarter of 2017 and a 4%
increase from the third quarter of 2018.

Operating income in the fourth quarter of 2018 was €31.0 million, a 20%
increase from the fourth quarter of 2017 and a 15% increase from the
third quarter of 2018.

Net finance expense for the fourth quarter of 2018 was €15.8 million, a
28% increase from the fourth quarter of 2017 and a 34% increase from the
third quarter of 2018.

Income tax expense for the fourth quarter of 2018 was €7.3 million, a
98% increase compared to the fourth quarter of 2017 and a 64% increase
from the third quarter of 2018. While benefiting from reductions in
statutory corporate tax rates in a number of countries of operation,
there was an associated non-cash negative impact to deferred tax assets.
In the fourth quarter 2018, this charge amounted to €2.4 million.

Net income was €8.0 million in the fourth quarter of 2018, an 18%
decrease over the fourth quarter of 2017 and a 27% decrease from the
third quarter of 2018.

Adjusted net income was €7.8 million in the fourth quarter of 2018, a
26% decrease over the fourth quarter of 2017 and a 33% decrease from the
third quarter of 2018.

Adjusted EBITDA for the fourth quarter of 2018 was €67.7 million, a 15%
increase from the fourth quarter of 2017 and a 3% increase from the
third quarter of 2018.

Adjusted EBITDA margin was 46.1% in the fourth quarter of 2018, compared
to 45.5% in the fourth quarter of 2017 and 46.3% in the third quarter of
2018.

Net cash flows from operating activities were €44.8 million in the
fourth quarter of 2018, compared to €45.5 million in the fourth quarter
of 2017 and €53.9 million in the third quarter of 2018.

Cash generated from operations⁶ was €76.9 million in the
fourth quarter of 2018, compared to €50.3 million in the fourth quarter
of 2017 and €60.9 million in the third quarter of 2018.

Capital expenditures, including intangible assets, were €131.3 million
in the fourth quarter of 2018, compared to €69.7 million in the fourth
quarter of 2017 and €103.2 million in the third quarter of 2018.

Cash and cash equivalents were €186.1 million at 31 December 2018,
compared to €38.5 million at 31 December 2017.

Total borrowings, excluding revolving facility deferred financing costs,
were €1,287.9 million at 31 December 2018, compared to €832.6 million at
31 December 2017. As at 31 December 2018 no amounts had been drawn under
this facility. During the first quarter of 2019, Interxion increased its
unsecured revolving credit facility by €100 million for total commitment
of €300 million.

Equipped space at the end of the fourth quarter of 2018 was 144,800
square metres, compared to 122,500 square metres at the end of the
fourth quarter of 2017 and 140,300 square metres at the end of the third
quarter of 2018.

Revenue generating space at the end of the fourth quarter of 2018 was
115,000 square metres, compared to 99,800 square metres at the end of
the fourth quarter of 2017 and 111,200 square metres at the end of the
third quarter of 2018.

Utilisation rate, the ratio of revenue-generating space to equipped
space, was 79% at the end of the fourth quarter of 2018, compared to 81%
at the end of the fourth quarter of 2017 and 79% at the end of the third
quarter of 2018.

Annual Review

Revenue for 2018 was €561.8 million, a 15% increase compared to 2017.
Recurring revenue for 2018 was €533.1 million, a 15% increase compared
to 2017, and accounted for 95% of total revenue in 2018, consistent with
2017. On an organic constant currency basis, revenue in 2018 was 15%
higher than in 2017.

Gross profit was €342.3 million in 2018, a 15% increase compared to
2017. Gross profit margin was 60.9% in 2018, a decrease of 20 bps
compared to 2017.

Sales and marketing costs for 2018 were €36.5 million, a 9% increase
compared to 2017.

Adjusted EBITDA for 2018 was €257.8 million, a 17% increase compared to
2017. Adjusted EBITDA margin for 2018 was 45.9%, an increase of 70 bps
compared to 2017.

Net income was €31.1 million in 2018, compared to €39.1 million in 2017.
Diluted earnings per share in 2018 were €0.43 on a weighted average of
72.1 million shares, compared to €0.55 on a weighted average of 71.5
million shares in 2017.

Adjusted net income was €40.2 million in both 2018 and 2017. Adjusted
diluted earnings per share were €0.56 on a weighted average of 72.1
million shares, compared to €0.56 on a weighted average of 71.5 million
shares in 2017. A reconciliation from Net income to Adjusted net income
is provided in the tables attached to this press release.

Cash generated from operations was €251.0 million in 2018, an increase
of 20% compared to 2017.

Capital expenditures, including intangible assets, were €451.2 million
in 2018 compared to €256.0 million in 2017.

During 2018, Equipped space increased by 22,300 square metres, and
Revenue generating space increased by 15,200 square metres⁴.
Utilisation rate was 79% as of 31 December 2018, compared to 81% as of
31 December 2017.

Expansions in Frankfurt and Zurich; Land Purchase in Copenhagen

In response to continuing strong demand, Interxion is today announcing
that it will construct a new data centre in Zurich (“ZUR2”) and expand
its FRA15 data centre in Frankfurt. In addition, Interxion has purchased
land to expand its Copenhagen campus.

In Zurich, ZUR2 will be built on land purchased in the fourth quarter of
2018. It will be constructed in four phases delivering 6,600 square
metres of equipped space and 12 MW of customer available power when
fully built out. The first phase of ZUR2 is expected to provide 1,700
sqm and is scheduled to be completed in the first quarter of 2020. The
second phase is expected to provide 1,900 sqm and is scheduled to become
available in the third quarter of 2020. The capital expenditure
associated with the full build of ZUR2 and the associated land, is
expected to be approximately €120 million.

In Frankfurt, Interxion will expand its FRA15 data centre by
constructing Phase 2 which will add an additional 2,600 square metres of
equipped space that is scheduled to open in the fourth quarter of 2020.
Capital expenditure associated with the first two phases of FRA15 is
expected to be approximately €137 million.

In Copenhagen, Interxion has expanded its land bank by purchasing land
adjacent to its existing data centres sufficient to add capacity of
approximately 15,000 square metres in equipped space to the existing
campus. The capital expenditure associated with the Copenhagen land
purchase was approximately €10 million.

Business Outlook

Interxion today is providing guidance for full year 2019:

^(a) IFRS16 refers to the International Financial Reporting
Standard 16 – Leases, which the company adopted from 1 January
2019. Under IFRS16, operating leases will be recognized as right of use
assets and lease liabilities, and certain components of revenue will be
recognized as lease revenue.

^(b) The 2018 results on an IFRS16 basis represent the
Company’s estimates as if IFRS16 had been adopted as of 1 January 2018.
On this basis, revenue for 2018 would have remained broadly unchanged
versus as reported. Adjusted EBITDA for 2018 increases by €38.7 million
due to changes in the treatment of rent expenses. The 2018 results on an
IFRS16 basis are being presented solely for comparative purposes in the
context of the Company’s 2019 guidance.

Conference Call to Discuss Results

Interxion will host a conference call today at 8:30 a.m. ET (1:30 p.m.
GMT, 2:30 p.m. CET) to discuss the results.

To participate on this call, U.S. callers may dial toll free
1-866-966-1396; callers outside the U.S. may dial direct +44 (0) 2071
928 000. The conference ID for this call is INXN. This event also will
be webcast live over the Internet in listen-only mode at
investors.interxion.com.

A replay of this call will be available shortly after the call concludes
and will be available until 19 March 2019. To access the replay, U.S.
callers may dial toll free 1-866-331-1332; callers outside the U.S. may
dial direct +44 (0) 3333 009 785. The replay access number is 6137888.

Forward-looking Statements

This communication contains forward-looking statements that involve
risks and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events could
differ materially from those anticipated in such forward-looking
statements. Factors that could cause actual results and future events to
differ materially from Interxion’s expectations include, but are not
limited to, the difficulty of reducing operating expenses in the short
term, the inability to utilise the capacity of newly planned data
centres and data centre expansions, significant competition, the cost
and supply of electrical power, data centre industry over-capacity,
performance under service level agreements, delays in remediating the
material weakness in internal control over financial reporting and/or
making disclosure controls and procedures effective, certain other risks
detailed herein and other risks described from time to time in
Interxion’s filings with the United States Securities and Exchange
Commission (the “SEC”).

Interxion does not assume any obligation to update the forward-looking
information contained in this report.

Non-IFRS Financial Measures

Included in these materials are certain non-IFRS financial measures,
which are measures of our financial performance that are not calculated
and presented in accordance with IFRS, within the meaning of applicable
SEC rules. These measures are as follows: (i) Adjusted EBITDA; (ii)
Recurring revenue; (iii) Revenue on an organic constant currency basis;
(iv) Adjusted net income; (v) Adjusted basic earnings per share; (vi)
Adjusted diluted earnings per share and (vii) Cash generated from
operations.

Other companies may present Adjusted EBITDA, Recurring revenue, Revenue
on an organic constant currency basis, Adjusted net income, Adjusted
basic earnings per share, Adjusted diluted earnings per share and Cash
generated from operations differently than we do. Each of these measures
are not measures of financial performance under IFRS and should not be
considered as an alternative to operating income or as a measure of
liquidity or an alternative to Profit for the period attributable to
shareholders (“net income”) as indicators of our operating performance
or any other measure of performance implemented in accordance with IFRS.

Adjusted EBITDA, Recurring revenue and Revenue on an organic constant
currency basis

We define Adjusted EBITDA as Operating income adjusted for the following
items, which may occur in any period, and which management believes are
not representative of our operating performance:

• Depreciation and amortisation – property, plant and equipment and
  intangible assets (except goodwill) are depreciated on a straight-line
  basis over the estimated useful life. We believe that these costs do
  not represent our operating performance.
• Share-based payments – represents primarily the fair value at the date
  of grant of employee equity awards, which is recognised as an expense
  over the vesting period. In certain cases, the fair value is
  redetermined for market conditions at each reporting date, until the
  final date of grant is achieved. We believe that this expense does not
  represent our operating performance.
• Income or expense related to the evaluation and execution of potential
  mergers or acquisitions (“M&A”) – under IFRS, gains and losses
  associated with M&A activity are recognised in the period in which
  such gains or losses are incurred. We exclude these effects because we
  believe they are not reflective of our on-going operating performance.
• Adjustments related to terminated and unused data centre sites – these
  gains and losses relate to historical leases entered into for certain
  brownfield sites, with the intention of developing data centres, which
  were never developed and for which management has no intention of
  developing into data centres. We believe the impact of gains and
  losses related to unused data centres are not reflective of our
  business activities and our on-going operating performance.

In certain circumstances, we may also adjust for other items that
management believes are not representative of our current on-going
performance. Examples include: adjustments for the cumulative effect of
a change in accounting principle or estimate, impairment losses,
litigation gains and losses or windfall gains and losses.

We define Recurring revenue as revenue incurred from colocation and
associated power charges, office space, amortised set-up fees,
cross-connects and certain recurring managed services (but excluding any
ad hoc managed services) provided by us directly or through third
parties, excluding rents received for the sublease of unused sites.

We believe Adjusted EBITDA and Recurring revenue provide useful
supplemental information to investors regarding our on-going operational
performance. These measures help us and our investors evaluate the
on-going operating performance of the business after removing the impact
of our capital structure (primarily interest expense) and our asset base
(primarily depreciation and amortisation). Management believes that the
presentation of Adjusted EBITDA, when combined with the primary IFRS
presentation of net income, provides a more complete analysis of our
operating performance. Management also believes the use of Adjusted
EBITDA facilitates comparisons between us and other data centre
operators (including other data centre operators that are REITs) and
other infrastructure-based businesses. Adjusted EBITDA is also a
relevant measure used in the financial covenants of our revolving credit
facility and our 4.75% Senior Notes due 2025.

A reconciliation from net income to Adjusted EBITDA is provided in the
tables attached to this press release. Adjusted EBITDA and other key
performance indicators may not be indicative of our historical results
of operations based on IFRS, nor are they meant to be predictive of
future results under IFRS.

We present organic constant currency information for revenue to provide
a framework for assessing how our underlying businesses performed
excluding the effect of acquisitions and foreign currency rate
fluctuations. For purposes of calculating revenue on an organic constant
currency basis, revenues from entities acquired during the current and
comparison periods are excluded. Also, current and comparative prior
period results for entities reporting in currencies other than Euro are
converted into Euro using the average exchange rates from the prior
period rather than the actual exchange rates in effect during the
current period.

We believe that revenue growth is a key indicator of how a company is
progressing from period to period and presenting organic constant
currency information for revenue provides useful supplemental
information to investors regarding our on-going operational performance
because it helps us and our investors evaluate the on-going operating
performance of the business after removing the impact of acquisitions
and currency exchange rates.

Adjusted net income, Adjusted basic earnings per share and Adjusted
diluted earnings per share

We define Adjusted net income as net income adjusted for the following
items and the related income tax effect, which may occur in any period,
and which management believes are not reflective of our operating
performance:

• Income or expense related to the evaluation and execution of potential
  mergers or acquisitions (“M&A”) – under IFRS, gains and losses
  associated with M&A activity are recognised in the period in which
  such gains or losses are incurred. We exclude these effects because we
  believe they are not reflective of our on-going operating performance.
• Adjustments related to provisions – these adjustments are made for
  adjustments in provisions that are not reflective of the on-going
  operating performance of Interxion. These adjustments may include
  changes in provisions for onerous lease contracts.
• Adjustments related to capitalised interest – under IFRS, we are
  required to calculate and capitalise interest allocated to the
  investment in data centres and exclude it from net income. We believe
  that reversing the impact of capitalised interest provides information
  about the impact of the total interest costs and facilitates
  comparisons with other data centre operators.

In certain circumstances, we may also adjust for other items that
management believes are not representative of our current on-going
performance. Examples include: adjustments for the cumulative effect of
a change in accounting principle or estimate, impairment losses,
litigation gains and losses or windfall gains and losses.

Management believes that the exclusion of certain items listed above
provides useful supplemental information to net income to aid investors
in evaluating the operating performance of our business and comparing
our operating performance with other data centre operators and
infrastructure companies. We believe the presentation of Adjusted net
income, when combined with net income prepared in accordance with IFRS,
is beneficial to a complete understanding of our performance. A
reconciliation from reported net income to Adjusted net income is
provided in the tables attached to this press release.

Adjusted basic earnings per share and Adjusted diluted earnings per
share amounts are determined on Adjusted net income.

Cash generated from operations

Cash generated from operations is defined as net cash flows from
operating activities, excluding interest and corporate income tax
payments and receipts. Management believes that the exclusion of these
items provides useful supplemental information to net cash flows from
operating activities to aid investors in evaluating the cash generating
performance of our business.

Management’s outlook for 2019 included in this press release includes a
range for expected Adjusted EBITDA, a non-IFRS financial measure, which
excludes items that management believes are not representative of our
operating performance. These items include, but are not limited to,
depreciation and amortisation, share-based payments, income or expense
related to the evaluation and execution of potential mergers or
acquisitions, adjustments related to terminated and unused data centre
sites, and other significant items that currently cannot be predicted.

Contacts

Interxion
Jim Huseby
Investor Relations
Tel:
+1-813-644-9399
IR@interxion.com

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