Earnings Roundup 4/29: Internap, Earthlink, Colt

April 29th, 2011 by · Leave a Comment

Sometimes the reports are all spread out, and sometimes they clump together.  This quarter it's the latter, so it's time for a quick look at a few more reports from yesterday:

Internap Network Services (NASDAQ:INAP, news, filings) had a bit of a rough quarter, as revenues declined sequentially again to $59.4M and normalized earnings turned negative with the loss of a penny per share.  The company guided toward sequential improvement in Q2, something that analysts seem to have hoped for a bit earlier.  Internap also announced an expansion into Los Angeles with a new 55K square foot facility in the South Bay, 6 miles from LAX.  They also saw a win at Endavo Media for their CDN services, which have been popping up more frequently.  Internap's stock has been doing quite well of late, touching 8 for the first time in three years as investors have liked their efforts to refocus on the colo segment.

Earthlink (NASDAQ:ELNK, news, filings) filed its first report that includes a full quarter of results from Deltacom, posting revenues of $243M, adjusted EBITDA of $69.7M, and earnings per share of $0.15.  Business services now account for 59% of the company's revenues, a number that will go up now that the One Communications deal is also complete.  On that front, they updated full year guidance for EBITDA of $305-315, which suggests annualized EBITDA levels at One of about $75M, which in turn puts an EV/EBITDA multiple of about 5 on the deal if my math is correct.

And over in Europe, Colt Group (LON:COLT, news) turned in its interim results for the first quarter.  Revenues and EBITDA both fell rather sharply to €377.6M and €77.0M from €396.7M and €88.2M in the prior quarter, respectively.  The weakness came largely from Voice revenues, specifically rate reductions for mobile termination.  CEO Rakesh Bhasin indicated that the company's restructuring is largely complete and that demand is picking up for data and managed services.  Colt's very extensive on-net footprint has not helped its growth in the same way such assets have helped others in the US, but that may start to change soon.

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Categories: CLEC · Datacenter · Financials · Internet Backbones

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