Metro fiber operator abvt continued its rapid growth through the second quarter. Revenues, EBITDA, EBITDA Margin, and earnings per share all came in ahead of expectations. In fact, the company's guidance for the year now was too light, and therefore they had to raise it. Here is a quick tabular summary:
|$ in millions||Q1/09||Q2/09||Q3/09||Q4/09||Q1/10||Q2/10||2010 Guidance|
|EBITDA Margin||44.7%||43.8%||44.0%||41.6%||43.8%||45.4%||inline with 2009 or slightly above|
Revenues: For the first quarter, revenues of $100.7M were slightly above analyst expectations which mostly came in still below that $100M watermark. They were therefore able to raise guidance to $400-410 for the full year.
EBITDA: EBITDA of $45.7M was the company's highest since its re-emergence, coming both from those higher revenues and from costs which remain under control. EBITDA margins of 45.4% were above expectations, and one has to wonder if they don't have 50% in their sights privately. For this year, they now expect EBITDA margins to be similar or slightly above last year's.
Earnings: Earnings per share of $0.62 easily exceeded the street's expectations of $0.54, which is only to be expected given the outperformance on revenues and EBITDA.
Cash: Capital expenditures of $30.1M continued to not reflect the company's expectation of elevated levels, despite their recent entry in to the Miami market and some other efforts across the Atlantic. The company still expects to spend $150-160M for the year, which would mean some $90-100M in the second half.
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