In today’s Q2 earnings report from euNetworks (SIN:H23, news), one can see early signs of success in its drive to unlock the value in its metro assets. The European marketplace is less mature for such assets than it is here in the USA, but that may be starting to change. Revenues rose to €9.4M, up some 18% from the first quarter alone. There’s probably some lumpiness in that surge obviously, but they do certainly seem to be on the move. Demand was particularly strong from the financial vertical of course, since despite its small size euNetworks is one of the major players in the low latency game between London and Frankfurt etc.
Adjusted EBITDA rose to break-even from the negative territory it had been in until now, while capex surged to €6M. What are they spending the extra money on? As of the end of Q2, the company had 295 on-net buildings, up 11% since the beginning of the year. That rate was actually a bit slower than they had hoped, which they said was largely due to the regulatory and legal differences across the countries and cities in their footprint – European Union or no European Union I guess. They hope to increase the rate at which they add new buildings in the second half as they streamline the various processes. Hmmm, I think it’s finally time to add some European data to my metro fiber statistics page.
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