As it GTT posted its third quarter earnings report this morning, the company also revealed its next public financial objective. With the closing of its purchase of One Source Networks last month, GTT had achieved its previous goal of $400M in annualized revenue and $100M in EBITDA after several years of rolling up managed network and international backbone assets.
Revenues for Q3 checked in at $97M, right about where they were expected to. Under constant currency from the same period last year, revenue would have been 2.9M higher, but the strong dollar has had that sort of effect on many network operators with significant holdings overseas. Adjusted EBITDA came in at $20.8M, while earnings per share of 0.05 were a penny higher than composite estimates.
Now, about that new target. It’s $1B in annualized revenue and $250M in adjusted EBITDA within the next five years. They’ll have to do more than a little M&A to make that happen of course, and it should be quite interesting to see what sort of assets they decide to go after. The list up through now includes WBS Connect, PacketExchange, nLayer, Inteliquent’s IP and Ethernet business, UNSi, Megapath’s managed services business, and of course One Source Networks.
But for the short term, they’ll surely be integrating One Source Networks for a quarter or two, consolidating their current gains and working on the organic side of things.
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