euNetworks Keeps on Rolling, Posts Q2 Numbers

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
Revenue	32.2	31.8	32.3	32.6	33.8
Adj. EBITDA	10.7	10.8	10.6	10.7	12.5
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%
Capital Expenditures	16.1	11.9	16.5	14.2	16.9
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.

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Categories: Financials · Metro fiber