Unshackled From the SGX, euNetworks Pushes Forward

May 26th, 2015 by · Leave a Comment

We have one last earnings report for the first quarter left to look at.  The pan-European fiber operator euNetworks may no longer be listed on the Singapore exchange, but are still reporting their numbers.  And it was a pretty strong quarter, with revenues and EBITDA both up sequentially for the third consecutive quarter.  Here are their numbers in some context:

 in millions of €, UOS  Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
 - Fibre 4.5 5.1 5.8
 - Wavelengths 6.5 7.8 8.2
 - Ethernet 5.1 5.3 5.3
 - Non-focus 6.3 6.2 6.2
Total Revenue 25.4 25.1 25.7 27.2 27.8
Gross margin 73.5% 75.3% 76.1% 76.6% 77.5%
Adj EBITDA 6.5 7.0 7.5 7.5 7.6
Adj EBITDA margin 25.6% 27.8% 29.1% 27.5% 27.3%
Capital Expenditures 6.8 6.9 8.8 6.1 9.2
Proxy Cash Flow (0.3) 0.1 (1.3) 1.3 (1.6)
New Sales (in thousands of €) 782.6 788.1 630.8 783.7 789
Installs (in thousands of €) 640.3 661.6 688.9 734.8 585
Monthly Incremental Service Revenue 155.1 225.9 254.2 123.9 209
Churn 1.0% 0.8% 1.1% 1.6% 1.0%

Dark fiber revenues surged during the quarter, and wavelengths did well also as monthly recurring product revenues grew faster than total revenues.  New Sales and MISR were both strong, although actual installs were down due to several expected factors.  Capex was up as the company invested in its infrastructure, as we saw recently with the opening of their low latency route to Zurich and the ongoing integration of the Fibrelac assets.  EBITDA was steady despite the extra expenses associated with the move off the SGX.

European fiber consolidation still beckons, although the pace of actual deals at the infrastructure level hasn't approached what we saw in the USA a few years back.  euNetworks has more flexibility than it did before, and it should be interesting to see what they do with it.

 

 

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: Financials · Metro fiber

Discuss this Post


Leave a Comment

You may Log In to post a comment, or fill in the form to post anonymously.





  • Ramblings’ Jobs

    Post a Job - Just $99/30days
  • Event Calendar