Steady revenue growth, some organic some inorganic, steady margin expansion, and plenty of new on-net buildings marked Zayo's fiscal second quarter. Here are their numbers in some context:
|$ in millions||Fiscal
|- Mobile Infrastructure||17.5||19.0||18.9||19.8|
|- Dark Fiber||74.9||77.1||78.9||83.6|
|Adj. EBITDA Margin||58.1%||54.9%||58.7%||59.0%|
The company closed both the Access Communications and Fiberlink deals near the start of the quarter, with adjusted EBITDA multiples of 12.3 and 11.7, respectively, according to the earnings supplement. The two acquistions combined added perhaps a third of the company's incremental revenue growth, with the rest coming from organic growth. Margins expanded up to 59%, putting the 60% barrier within reach before long if they keep up the pace.
The extensive segment breakdown has enough data to see the product trends. The only downward trend is clearly Sonet, with zColo, Ethernet, and Mobile having very good quarters. Dark fiber is where most of the acquire revenue went I think, but I will listen for that on the call.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!Categories: Fiber Networks · Financials · Metro fiber