A Strong Finish to 2010 for euNetworks

March 1st, 2011 by · Leave a Comment

European metro fiber operator euNetworks (SIN:H23, news) closed the books on 2010 with their earnings report today, showing strong sequential progress comparable to its larger US cousins.  The European metro market is a different place, with fewer independent operators that span national boundaries and lagging the US in development overall.  They also restated some items,here's a quick table of their quarterly progress in 2010:

€ in millions Q4/09 Q1/10 Q2/10 Q3/10 Q4/10
- recurring 8.4 8.2 10.2 9.9 10.9
- non-recurring 0.8 0.6 0 1.2 2.8
Revenue 9.2 8.8 10.2 11.1 13.7
Adj EBITDA -1.2 -1.6 -1.9 0.8 1.8
Adj EBITDA margin -13% -18% -18% 8% 13%
Capital Expenditures 5.5 2.3 3.4 4.5 5.2

Revenue: Network services revenue for all of 2010 was 30.4M, up over 50% from 2010, while the company's data center segment fell 0.1M to 13.4M.  The overall revenue trend has been steadily up since the beginning of the year.  Given capex trends, that seems likely to continue.

EBITDA: Margins remained in positive territory, rising to +13%, helped along by the scale that comes with revenue growth.  Still a long way to climb though to match similar assets on this side of the Atlantic.

On-net Buildings: euNetworks finished the year with 365 buildings on-net, up 93 for the year, with another 58 in progress.  Most of those buildings are in London and Frankfurt, but the other markets are starting to contribute as well.

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Categories: Financials · Metro fiber

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