euNetworks Keeps on Rolling, Posts Q2 Numbers

August 3rd, 2017 by · Leave a Comment

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

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