Zayo Posts Q4 Growth, Details Unnamed Colo Deal

November 8th, 2013 by · 5 Comments

If it seems like just six weeks or so since the last Zayo earnings release, that's because it has.  Nevertheless, Zayo has posted its fiscal Q1/2014 numbers, and like the other network operators this quarter they've been just pushing forward with steady organic growth, though with a bit of inorganic stuff in there too - this is Zayo of course.  I've rebuilt the table to account for the more granular service breakdown over the past three quarters:

$ in millions Fiscal
Q3/13
Fiscal
Q4/13
Fiscal
Q1/14
 - Wavelength 60.7 62.1 63.3
 - Sonet 32.5 31.9 31.6
 - Ethernet 33.8 35.3 36.1
 - IP 23.0 23.1 23.8
 - Mobile Infrastructure 17.5 19.0 18.9
 - zColo 15.9 16.7 18.9
 - Dark Fiber 74.9 77.1 78.9
Total Revenue 251.4 258.2 264.3
Adjusted EBITDA 146.1 141.7 155.4
Adj. EBITDA Margin 58.1% 54.9% 58.7%
Capex 95.7 101.9 86.7
Buildings on-net 11,740 12,222 14,001

In addition, in their earnings supplement Zayo offered details on one of the more hard to pin down M&A moves that's been rumored.  Without naming names, they spent $15.2M for a four datacenter, three market, colocation asset in a deal that closed on August 1.  I'll name names and say this does sound like CoreLink or some piece of it, as was rumored.  CoreLink operates two facilities in Seattle, and one each in Phoenix and Chicago, which seems like it will fit quite well with the zColo business.

Zayo's on-net building count surged past the 14,000 mark, adding a whole bunch of enterprise sites according to the supplement.  I look forward to more information on the call.

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Categories: Fiber Networks · Financials · Metro fiber

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