Zayo has checked in with its Fiscal Q4 numbers, posting a solid quarter. Revenue checked in at $507.3M, which was above analyst projections, while EBITDA rose proportionally to $257.8M. Here are their numbers in some context:
| $ in millions | Fiscal Q4/15 |
Fiscal Q1/16 |
Fiscal Q2/16 |
Fiscal Q3/16 |
Fiscal Q4/16 |
|---|---|---|---|---|---|
| – Dark Fiber | 135.3 | 135.0 | 137.7 | 144.3 | 146.9 |
| – Network Connectivity | 163.0 | 167.0 | 168.7 | 172.5 | 175.3 |
| – Colo & Cloud | 57.6 | 58.3 | 58.5 | 60.3 | 63.6 |
| – Other+Canada | 6.0 | 6.5 | 4.7 | 100.9 | 121.5 |
| Total Revenue | 361.9 | 366.8 | 369.6 | 478.0 | 507.3 |
| Adjusted EBITDA | 210.9 | 215.4 | 218.9 | 242.8 | 257.8 |
| Adj. EBITDA Margin | 58.3% | 58.7% | 59.2% | 50.8% | 50.8% |
| Capex | 155.5 | 159.2 | 172.4 | 185.1 | 187.4 |
| Buildings on-net | 17,973 | 18,528 | 19,341 | 23,418 | 24,282 |
This is the first full quarter for revenue from the Allstream assets, now operating as Zayo Canada, and they also have a full quarter of revenue from the Clearview acquisition which contributed to the colo & cloud segment. Other than the bump in those categories, Zayo saw its usual steady growth in both dark and lit services. Recurring revenue growth of 7% is right about where we are used to seeing it.
With integration of the Canadian and European assets ongoing, integration costs and synergies seem to have mostly canceled each other out this quarter. EBITDA margins held steady at just under 51%. As they start to make more moves with the Canadian assets, I expect we’ll be seeing that number creep back up again.
Zayo added 865 on-net buildings during the quarter, and saw capex tick up but only slightly to $187.4M. Net installs hit a new high at $2.4M, but net bookings during the quarter of $6.4M were on the low end. Churn held steady in the 1.1% range.
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