They may be privately held, but every six months or so Interoute gives us a glimpse of how they’re doing, and in the first half of 2010, they continued their march forward. Revenues grew to €139M, up from €129M in the first half of last year. That’s a growth rate of 7.8% or so, which isn’t spectacular but is certainly respectable given the economic uncertainty over in Europe. More importantly, they managed to drive a bigger share of that revenue into €28M in EBITDA, up from €22.7M in the first half of 2009.
That brings their EBITDA margin up to 20%, as they begin to leverage scale a bit better. Interoute operates the what it bills as the “Europe’s largest next generation network”, where by largest I believe they mean the most extensive – covering 55,000 route kilometers. But the total revenues are still catching up to that scale, else they’d have higher margins given their fiber footprint. That said, they are apparently now fully self funding.
One thing Interoute is doing that few smaller fiber operators are is offering cloud services to the enterprise and repackaging their connectivity offerings in a similar fashion. They’ve never really though of themselves as a telecom but rather as a data business, and hence it is a logical step forward. They credit their growth in the first half at least partially to excellent demand for their cloud offerings from the enterprise space. Mixing cloud computing and fiber – might we see more of that elsewhere?
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