Over in the bandwidth infrastructure market in Europe, euNetworks released its Q2 financials this morning. They posted another quarter of strong new sales, with recurring revenue up 3% sequentially. Here is a table of their overall numbers.
|in millions of €, UOS||Q2/13||Q3/13||Q4/13||Q1/14||Q2/14|
|Adj EBITDA margin||24.5%||26.1%||30.8%||25.6%||27.8%|
|Proxy Cash Flow||1.1||(2.4)||(3.3)||(0.3)||0.1|
|New Sales (in thousands of €)||477.1||607.1||782.6||788.1|
|Installs (in thousands of €)||515.0||650.9||640.3||661.6|
|Monthly Incremental Service Revenue||(13.0)||158.3||155.1||225.9|
|Churn (new methodology)||1.0%||1.0%||1.0%||0.8%|
The first quarter total revenue number included a one-time sale of €0.9M, whereas this quarter does not. Thus in terms of recurring revenue and new sales and especially monthly incremental service revenue, euNetworks saw another strong quarter after a year of offsets in 2013. Adjusted EBITDA jumped up to €7.0M on the strength of higher margins. Capex was up slightly sequentially, boosting proxy cash flow just into positive territory.
Otherwise, it seems to have been a relatively quiet quarter for euNetworks. Much of the M&A chatter in the press across the Atlantic has been about the larger players and especially wireless lately, and after Zayo's moves on Neo and Geo last quarter there was less to look at at the metro and regional fiber level. I expect we'll see more action in the second half though, and as always euNetworks could be on either side of that table since there aren't many assets like theirs on the market.
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