euNetworks Posts Solid Revenue, EBITDA Gains

March 3rd, 2016 by · Leave a Comment

While no longer publicly traded, euNetworks is still keeping the markets up to date on its quarterly financial progress and thus remains an interesting pure-play fiber infrastructure window into into Europe.  This morning they posted their Q4/2015 numbers, finishing out the year on a decidedly positive note.  Here is a quick tabular summary:

 in millions of €, UOS  Q4/14 Q1/15 Q2/15 Q3/15 Q4/15
 - Fibre 5.1 5.8 6.1 6.5  6.6
 - Wavelengths 7.8 8.2 9.0 9.2 9.7
 - Ethernet 5.3 5.3 5.4 5.5 5.5
 - Non-focus 6.2 6.2 6.1 6.0 6.0
 - Energy, Amortised, Other 2.8 2.2 2.6 2.5 2.8
Total Revenue 27.2 27.8 29.2 29.6 30.6
Gross margin 76.6% 77.5% 77.2% 77.6% 77.6%
Adj EBITDA 7.5 7.6 8.2 8.2 9.9
Adj EBITDA margin 27.5% 27.3% 28.1% 27.7% 32.3%
Capital Expenditures 6.1 9.2 9.8 11.3 10.9
Proxy Cash Flow 1.3 (1.6) (1.6) (3.1) (1.0) 
New Sales (in thousands of €) 784 789 796 898 819
Installs (in thousands of €) 735 585 774 699 655
Monthly Incremental Service Revenue 124 209 240 166 197
Churn 1.6% 1.0% 1.1% 1.3% 0.9%

 

Revenues were up, surpassing the 30M mark on strong wavelength sales and putting the full year growth rate at some 14% over 2014.  New Sales, Installs, and Monthly Incremental Service Revenue all fell within the ranges they've been in all year, while churn fell enough to fully offset last quarter's bump.  EBITDA was up even more sequentially, surging above 30% of revenue for the first time and finishing the full year up 19% from 2014.

Proxy Cash Flow remained slightly in the red, but for good reasons.  Capex on new projects remained high as the company continued to reinvest all the operating cash flow it generates into future growth.  It's trend looks likely to continue this year, as the company said further strategic network investments are in the pipeline.  We saw one of those just last week with the expansion of the company's fiber network south through France all the way to Marseilles.

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Categories: Fiber Networks · Financials

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