If it seems like just six weeks or so since the last Zayo earnings release, that’s because it has. Nevertheless, Zayo has posted its fiscal Q1/2014 numbers, and like the other network operators this quarter they’ve been just pushing forward with steady organic growth, though with a bit of inorganic stuff in there too – this is Zayo of course. I’ve rebuilt the table to account for the more granular service breakdown over the past three quarters:
| $ in millions | Fiscal Q3/13 |
Fiscal Q4/13 |
Fiscal Q1/14 |
|---|---|---|---|
| – Wavelength | 60.7 | 62.1 | 63.3 |
| – Sonet | 32.5 | 31.9 | 31.6 |
| – Ethernet | 33.8 | 35.3 | 36.1 |
| – IP | 23.0 | 23.1 | 23.8 |
| – Mobile Infrastructure | 17.5 | 19.0 | 18.9 |
| – zColo | 15.9 | 16.7 | 18.9 |
| – Dark Fiber | 74.9 | 77.1 | 78.9 |
| Total Revenue | 251.4 | 258.2 | 264.3 |
| Adjusted EBITDA | 146.1 | 141.7 | 155.4 |
| Adj. EBITDA Margin | 58.1% | 54.9% | 58.7% |
| Capex | 95.7 | 101.9 | 86.7 |
| Buildings on-net | 11,740 | 12,222 | 14,001 |
In addition, in their earnings supplement Zayo offered details on one of the more hard to pin down M&A moves that’s been rumored. Without naming names, they spent $15.2M for a four datacenter, three market, colocation asset in a deal that closed on August 1. I’ll name names and say this does sound like CoreLink or some piece of it, as was rumored. CoreLink operates two facilities in Seattle, and one each in Phoenix and Chicago, which seems like it will fit quite well with the zColo business.
Zayo’s on-net building count surged past the 14,000 mark, adding a whole bunch of enterprise sites according to the supplement. I look forward to more information on the call.
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It is CoreLink – ask J Sinder
what is the motivation to not speak corelink’s name when Zayo has PR’d every other deal?
The seller must’ve had an issue.
seller was M/C Ventures
Yep it was corelink I use to work there I was the dark lord for Seattle.