While it is now privately held, euNetworks is still posting its quarterly earnings numbers and thus giving us a window into the pureplay infrastructure space in Europe. In the third quarter, the pan-European operator maintained its growth trend as it ramped up its capital investments. Here are their numbers in some context:
|in millions of €, UOS||Q3/14||Q4/14||Q1/15||Q2/15||Q3/15|
|- Energy, Amortised, Other||2.1||2.8||2.2||2.6||2.5|
|Adj EBITDA margin||29.1%||27.5%||27.3%||28.1%||27.7%|
|Proxy Cash Flow||(1.3)||1.3||(1.6)||(1.6)||(3.1)|
|New Sales (in thousands of €)||631||784||789||796||898|
|Installs (in thousands of €)||689||735||585||774||699|
|Monthly Incremental Service Revenue||254||124||209||240||166|
Revenue growth this quarter came mainly from the fiber side of things, while wavelength revenues increased at a slower pace after a big Q2. EBITDA held steady sequentially after jumping ahead in the prior quarter. Operationally, MISR was lower but is expected to bounce back next quarter, driven by a big sales number. Capex jumped up to €11.3M, reflecting growing infrastructure investments.
Meanwhile, in their earnings supplement euNetworks also offered a map detailing the Inland Fibre acquisition they made a few weeks ago. The new fiber (in yellow) takes them from their central ring in Dublin into the surrounding communities via ducts along canal towpaths and the like. As a fiber/duct asset, it looks as if integration will be a relatively simple job, leaving euNetworks able to do further M&A should the opportunity arise.