euNetworks Sees Steady EBITDA Rise

November 10th, 2016 by · Leave a Comment

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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