Higher churn held back euNetworks’ second quarter revenues, but Adjusted EBITDA continued to march ahead nonetheless. Back in May they raised additional capital for expansion, and plan to make it count in organic growth moving forward – and in inorganic growth if the opportunity arises. Given the growing rumbles of consolidation in Europe, that remains rather likely. Here are the numbers in some context for euNetworks for Q2/2012:
|in millions of €||Q2/12||Q3/12||Q4/12||Q1/13||Q2/13|
|Adj EBITDA margin||10.8%||13.7%||20.8%||23.0%||24.5%|
|Proxy Cash Flow||(5.7)||(3.1)||(0.0)||2.1||1.1|
Revenue churn of 2.8% came from three main sources: one known, large colo disconnect, further non-core SDN and IPVPN revenues in Germany, and some more microwave moves by the low latency trading guys. They expect churn to remain higher than usual for Q3, but are moving to bring it back under control and restore the upward overall trend.
In terms of network expansion, euNetworks added another 40 buildings to its network during the quarter. Since then they’ve kept up that pace and passed the 1,000 on-net building milestone just this past Thursday by connecting their 149th building in London. They took the opportunity to give some detail on the type of buildings: 226 data centers, 646 enterprise buildings, and 128 wireless towers (some 133 of the other two categories also happen to be tower sites).
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