Lots of earnings reports out this morning, apparently it's a popular day. Over in Europe, euNetworks posted a strong growth quarter in the bandwidth infrastructure space. Here are their numbers in some context:
|in millions of €, UOS||Q2/16||Q3/16||Q4/16||Q1/17||Q2/17|
|Normalized Adj EBITDA||11.1||11.0||11.7||11.3||12.1|
|Norm. Adj EBITDA margin||34.5%||34.6%||36.2%||34.7%||35.8%|
|Proxy Cash Flow||(5.6)||(1.1)||(5.9)||(3.5)||(4.4)|
Recurring revenue from fiber, waves, and Ethernet was up 11% over the same period last year, more than offsetting both legacy declines and adverse currency impacts. Normalized adjusted EBITDA rose above $12M for the first time, with margins above 35%.
Capex remained at the high levels they have been, hitting 50% of revenue again. euNetworks is pouring lots of resources into adding depth, breadth, and diversity to its fiber infrastructure. They have commenced a number of new investment initiatives in the metro and longhaul during the quarter after polishing off the London/Slough, Manchester, and German longhaul projects, although they're saving the details on the new projects for later.
We had euNetworks CEO Brady Rafuse on here just a couple weeks ago talking about the company's approach to the European infrastructure business.