CBeyond Sees Higher EBITDA Margins

March 3rd, 2010 by · Leave a Comment

Competitive service provider cbey released its Q4 and full year 2009 financials today.  Q4 Revenues of $107.7 were up sequentially but somewhat weaker than expected due to lower ARPU levels of $727, down from $744 in the prior quarter.  However, revenues have never really been the company’s weak spot, and they made up for it with strong Q4 EBITDA of $19M and earnings per share of $0.03, up from $15.3M and -$0.01 in the prior quarter and ahead of expectations.  Churn rose slightly to 1.5%.

Unlike so many nowadays in this sector, CBeyond provided full year guidance for 2010 of:

  • Revenue up 10%-13%, or about $455-467M
  • Adjusted EBITDA up 15%-20%, or about $73-76M
  • Capital expenditures up 2%-7%, or about $63-66M

EBITDA margins therefore appear ready to rise from 15% in 2009 to the 16% range in 2010.  There’s still more room for improvement there of course, but investors will surely welcome the higher EBITDA levels.  They will also welcome a return to higher ARPU levels of course.

CBeyond also announced that its next expansion market will be Boston, where they expect to open for business in the summer.

If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!

Categories: CLEC · Financials

Discuss this Post

Leave a Comment

You may Log In to post a comment, or fill in the form to post anonymously.

  • Ramblings’ Jobs

    Post a Job - Just $99/30days
  • Event Calendar