While it is now privately held, euNetworks is still posting its quarterly earnings numbers and thus giving us a window into the pureplay infrastructure space in Europe. In the third quarter, the pan-European operator maintained its growth trend as it ramped up its capital investments. Here are their numbers in some context:
| in millions of €, UOS | Q3/14 | Q4/14 | Q1/15 | Q2/15 | Q3/15 |
|---|---|---|---|---|---|
| – Fibre | 4.8 | 5.1 | 5.8 | 6.1 | 6.5 |
| – Wavelengths | 7.4 | 7.8 | 8.2 | 9.0 | 9.2 |
| – Ethernet | 5.2 | 5.3 | 5.3 | 5.4 | 5,5 |
| – Non-focus | 6.1 | 6.2 | 6.2 | 6.1 | 6.0 |
| – Energy, Amortised, Other | 2.1 | 2.8 | 2.2 | 2.6 | 2.5 |
| Total Revenue | 25.7 | 27.2 | 27.8 | 29.2 | 29.6 |
| Gross margin | 76.1% | 76.6% | 77.5% | 77.2% | 77.6% |
| Adj EBITDA | 7.5 | 7.5 | 7.6 | 8.2 | 8.2 |
| Adj EBITDA margin | 29.1% | 27.5% | 27.3% | 28.1% | 27.7% |
| Capital Expenditures | 8.8 | 6.1 | 9.2 | 9.8 | 11.3 |
| Proxy Cash Flow | (1.3) | 1.3 | (1.6) | (1.6) | (3.1) |
| New Sales (in thousands of €) | 631 | 784 | 789 | 796 | 898 |
| Installs (in thousands of €) | 689 | 735 | 585 | 774 | 699 |
| Monthly Incremental Service Revenue | 254 | 124 | 209 | 240 | 166 |
| Churn | 1.1% | 1.6% | 1.0% | 1.1% | 1.3% |
Revenue growth this quarter came mainly from the fiber side of things, while wavelength revenues increased at a slower pace after a big Q2. EBITDA held steady sequentially after jumping ahead in the prior quarter. Operationally, MISR was lower but is expected to bounce back next quarter, driven by a big sales number. Capex jumped up to €11.3M, reflecting growing infrastructure investments.
Meanwhile, in their earnings supplement euNetworks also offered a map detailing the Inland Fibre acquisition they made a few weeks ago. The new fiber (in yellow) takes them from their central ring in Dublin into the surrounding communities via ducts along canal towpaths and the like. As a fiber/duct asset, it looks as if integration will be a relatively simple job, leaving euNetworks able to do further M&A should the opportunity arise.
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Categories: Fiber Networks · Financials · Metro fiber
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