euNetworks Posts Solid Revenue, EBITDA Gains

While no longer publicly traded, euNetworks is still keeping the markets up to date on its quarterly financial progress and thus remains an interesting pure-play fiber infrastructure window into into Europe.  This morning they posted their Q4/2015 numbers, finishing out the year on a decidedly positive note.  Here is a quick tabular summary:

in millions of €, UOS	Q4/14	Q1/15	Q2/15	Q3/15	Q4/15
– Fibre	5.1	5.8	6.1	6.5	6.6
– Wavelengths	7.8	8.2	9.0	9.2	9.7
– Ethernet	5.3	5.3	5.4	5.5	5.5
– Non-focus	6.2	6.2	6.1	6.0	6.0
– Energy, Amortised, Other	2.8	2.2	2.6	2.5	2.8
Total Revenue	27.2	27.8	29.2	29.6	30.6
Gross margin	76.6%	77.5%	77.2%	77.6%	77.6%
Adj EBITDA	7.5	7.6	8.2	8.2	9.9
Adj EBITDA margin	27.5%	27.3%	28.1%	27.7%	32.3%
Capital Expenditures	6.1	9.2	9.8	11.3	10.9
Proxy Cash Flow	1.3	(1.6)	(1.6)	(3.1)	(1.0)
New Sales (in thousands of €)	784	789	796	898	819
Installs (in thousands of €)	735	585	774	699	655
Monthly Incremental Service Revenue	124	209	240	166	197
Churn	1.6%	1.0%	1.1%	1.3%	0.9%

 

Revenues were up, surpassing the €30M mark on strong wavelength sales and putting the full year growth rate at some 14% over 2014.  New Sales, Installs, and Monthly Incremental Service Revenue all fell within the ranges they’ve been in all year, while churn fell enough to fully offset last quarter’s bump.  EBITDA was up even more sequentially, surging above 30% of revenue for the first time and finishing the full year up 19% from 2014.

Proxy Cash Flow remained slightly in the red, but for good reasons.  Capex on new projects remained high as the company continued to reinvest all the operating cash flow it generates into future growth.  It’s trend looks likely to continue this year, as the company said further strategic network investments are in the pipeline.  We saw one of those just last week with the expansion of the company’s fiber network south through France all the way to Marseilles.

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Categories: Fiber Networks · Financials