Zayo Finishes Off Fiscal 2015 With Steady Growth

September 18th, 2015 by · 2 Comments

The last earnings numbers for internet infrastructure for the quarter ended June 30 rolled in today, as Zayo reported its fiscal Q4 and full year numbers.  Revenues came in right at the expected level, as did EBITDA, so no real surprises for the markets this morning.  Here's a quick summary of the company's numbers in some context:

$ in millions Fiscal
Q4/14
Fiscal
Q1/15
Fiscal
Q2/15
Fiscal
Q3/15
Fiscal
Q4/15
 – Physical Infrastructure 135.9 149.6 152.7 164.3 183.8
 – Cloud & Connectivity 153.8 156.1 157.4 163.0 172.1
 – Other Services 8.4 6.1 5.4 5.7 5.0
Total Revenue 296.7 320.6 323.9 340.7 361.9
Adjusted EBITDA 171.7 183.3 189.7 199.0 210.9
Adj. EBITDA Margin 55.9% 57.1% 58.6% 58.4% 58.3%
Capex 94.9 115.3 129.5 130.1 155.5
Buildings on-net 15,027 16,151 16,712 17,479 17,973

A fair amount of the raw growth came simply from having a full quarter of the Latisys acquisition, which brought both colo and cloud revenues to the table.  Meanwhile, capex jumped up once again, reflecting the big buildout announcements for both metro (Seattle, Nashville) and intercity (Atlanta-DC, Phoenix-Dallas).

They brought 494 buildings on-net and added 1,483 route miles to their network, which would be big numbers if they didn't post something just like them almost every single quarter.  Zayo also saw continued momentum in its sales and installs during the quarter.

Zayo has now been public for 11 months, and the question of whether being public would significantly affect their approach to the market seems to have been firmly answered in the negative.

Categories: Datacenter · Fiber Networks · Financials

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2 Comments So Far


  • Odd says:

    Very solid results.

  • schmuckinsurance says:

    Rob any thoughts on the liquid telecom. It has been reported that approaches have been made to the company and they have now hired banks to pursue a listing. Think any of the companies you follow would be interested in the broadband group pre-listing?

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