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
|Adj. EBITDA Margin||51.2%||48.7%||49.2%||50.5%||49.2%|
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.