The European network infrastructure provider euNetworks posted its third quarter earnings numbers today, which is awfully nice of them seeing as they’re privately held these days. After a big Q2 in which they had a bit of extra euTrade revenue during a migration, they held most of those gains and saw EBITDA keep marching upward. Here are their numbers in some context:
| in millions of €, UOS | Q3/15 | Q4/15 | Q1/16 | Q2/16 | Q3/16 |
|---|---|---|---|---|---|
| – Fibre | 6.5 | 6.6 | 6.7 | 6.8 | 6.9 |
| – Wavelengths | 9.2 | 9.7 | 10.1 | 11.2 | 11.2 |
| – Ethernet | 5.5 | 5.5 | 5.5 | 5.6 | 5.5 |
| – Non-focus | 6.0 | 6.0 | 5.9 | 5.9 | 5.8 |
| – Energy, Amortised, Other | 2.5 | 2.7 | 2.4 | 2.7 | 2.1 |
| Total Revenue | 29.6 | 30.6 | 30.6 | 32.2 | 31.8 |
| Gross margin | 77.6% | 77.6% | 78.0% | 78.4% | 78.1% |
| Adj EBITDA | 8.2 | 9.9 | 9.8 | 10.7 | 10.8 |
| Adj EBITDA margin | 27.7% | 32.3% | 32.0% | 33.2% | 34.0% |
| Capital Expenditures | 11.3 | 10.9 | 11.5 | 16.1 | 11.9 |
| Proxy Cash Flow | (3.1) | (1.0) | (1.7) | (5.6) | (1.1) |
| New Sales (in thousands of €) | 898 | 819 | 970 | 937 | 869 |
| Installs (in thousands of €) | 699 | 655 | 706 | 904 | 664 |
| Monthly Incremental Service Revenue | 166 | 197 | 381 | 254 | 257 |
| Churn | 1.3% | 0.9% | 0.7% | 1.1% | 0.9% |
Revenues were down sequentially, but inline with the overall trend. In Q2 euNetworks says it benefitted from ‘some dual running euTrade services as a result of the move of a major trading exchange’, which of course did not recur. EBITDA on the other hand rose anyway, with EBITDA margins reaching 34% for the first time.
Capex pulled back a bit after they finished off their dark fiber expansions to Marseille and Stockholm in Q3. It seems likely we’ll see more such bursts though.
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Categories: Financials · Metro fiber
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mhammett on euNetworks, Ciena Put 1.6Tbps Wavelengths to Work: “Did they say anywhere what the channel size was to deliver 1.6 TB/s? All of the other operators I’ve talked…” Nov 12, 08:31
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