Zayo posted its Fiscal Q3 2018 numbers yesterday, coming up short of analyst projections. Revenues fell sequentially to $649.4M, and Adjusted EBITDA dropped as well to $319.6M. Churn from the company’s Allstream business dragged things down relative to the prior quarter. Earnings per share of $0.09 was a couple of pennies shy of the street’s composite estimate.
| $ in millions | Fiscal Q3/17 | Fiscal Q4/17 | Fiscal Q1/18 | Fiscal Q2/18 | Fiscal Q3/18 |
|---|---|---|---|---|---|
| Total Revenue | 550.2 | 638.0 | 643.5 | 653.5 | 649.4 |
| – Fiber | 179.6 | 190.9 | 195.5 | 200.5 | 210.3 |
| – Transport | 110.5 | 117.4 | 119.1 | 117.3 | 117.2 |
| – Enterprise | 121.7 | 136.6 | 137.7 | 145.9 | 138.8 |
| – Colo | 53.6 | 56.7 | 58.4 | 59.9 | 59.6 |
| – Allstream | 79.3 | 128.9 | 127.7 | 123.5 | 117.7 |
| Adjusted EBITDA | 282.0 | 310.8 | 316.6 | 329.9 | 319.6 |
| Adj. EBITDA Margin | 51.2% | 48.7% | 49.2% | 50.5% | 49.2% |
| Capex | 208.3 | 205.3 | 193.4 | 193.4 | 195.1 |
| Buildings on-net | 29,402 | 30,555 | ~31,600 | 32,793 | 33,954 |
Zayo did see solid revenue growth in its fiber business, but the colo, enterprise, and transport segments were less happy. In terms of bookings, they rose to a promising $9.5M, and within that fiber and transport saw some decent strength. Operationally, Zayo’s trajectory remained on track, adding 1,161 on-net buildings and spending capex at a steady rate.
Since the beginning of the year, Zayo has acquired a data center in McLean and Neutral Path, and has agreed to sell Scott-Rice Telephone Co. The details of those deals will make next quarter’s numbers a bit harder to follow – but that’s par for the course with Zayo. We are still waiting to see what they have planned for the rest of the Allstream business, and there is still a likely REIT transition in the works.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!
Categories: Fiber Networks · Financials
Our Main RSS Feed
Our LinkedIn Group
Our Facebook Page
Follow @TelcoRamblings
Where in the world is Andrew Crouch?
Why did Crouch leave?
And why couldn’t it have been Jack Waters instead?
in-freakin-deed
When’s the last time Zayo’s earnings *fell*?
I don’t know, but its nothing that laying off a few hundred more people won’t cure by next quarter.