European independent metro operator euNetworks (SIN:H23, news) reported its second quarter earnings today. The story lately has been inorganic growth, with the acquisition of Lambdanet in May and Teragate AG a week ago. However, while these numbers include one month of Lambanet, euNetworks also saw organic growth in the period. Here is a quick tabular review of the company's results in the context of the prior four quarters:
|€ in millions||Q2/10||Q3/10||Q4/10||Q1/11||Q2/11|
|Adj EBITDA margin||-18%||8%||13%||4%||7.5%|
euNetworks' on-net building count rose by 95 during the quarter. Of those, 39 came with the LambdaNet acquisition while 56 were added by the company organically. That's an acceleration by the company, which has 173 more buildings in the pipeline as it builds out rapidly to bring out the value in all that metro fiber.
Adjusted EBITDA included €0.4M in costs associated with the Lambdanet purchase. Excluding that contribution, adjusted EBITDA would have been €1.5M, for a 10% EBITDA margin. Capex rose to $6.3M for the quarter, consistent with the higher rate of building additions and the inorganic growth.