euNetworks Keeps Growth Trend Intact

November 19th, 2015 by · Leave a Comment

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
 - Fibre 4.8 5.1 5.8 6.1 6.5
 - Wavelengths 7.4 7.8 8.2 9.0 9.2
 - Ethernet 5.2 5.3 5.3 5.4 5,5
 - Non-focus 6.1 6.2 6.2 6.1 6.0
 - Energy, Amortised, Other 2.1 2.8 2.2 2.6 2.5
Total Revenue 25.7 27.2 27.8 29.2 29.6
Gross margin 76.1% 76.6% 77.5% 77.2% 77.6%
Adj EBITDA 7.5 7.5 7.6 8.2 8.2
Adj EBITDA margin 29.1% 27.5% 27.3% 28.1% 27.7%
Capital Expenditures 8.8 6.1 9.2 9.8 11.3
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
Churn 1.1% 1.6% 1.0% 1.1% 1.3%

 

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.

ScreenHunter_04 Nov. 19 07.03Meanwhile, 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.

Categories: Fiber Networks · Financials · Metro fiber

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