Earnings Roundup: Windstream, GTT, Cogent, Exponential-e

Here are four other quick takes on earnings reports from network operators from this week:

Windstream posted revenues of $1.37B and a loss per share of $0.89 in a quarter which contained a little over a month of Earthlink’s numbers. If they’d owned Earthlink since the beginning of the quarter, the revenue number would have been $1.52B on which they’d have had $498M in OIBDAR. Windstream maintained guidance for revenue, OIBDAR, capex, and free cash flow – also adjusted for the deal. With Broadview Networks next in the queue, Windstream will certainly have its hands full on the integration front this year.

Cogent Communications posted service revenue of $117.2M for Q1, up 1.4% sequentially and 8.2% over the same period last year as they continued their steady growth trend. Adjusted EBITDA of $39.9M was up 5.6% sequentially and 11.9% over the same period last year. That news was good enough for yet another dividend increase, moving the quarterly divident up to $0.44 per common share. Some analysts are keeping an eye on Cogent in the wake of net neutrality regulatory changes, especially when it comes to interconnection.

GTT also found some nice growth in Q1. Revenues rose to $182.4M while adjusted EBITDA hit $50.7M, both up sharply on the strength of a partial quarter of results from Hibernia Networks. Organically on a pro forma basis they also managed some 2.3% revenue growth over Q4/2016. The company expects to derive $30M in synergies, and has a longer term goal of annual revenue of $1B and adjusted EBITDA of $250M.

And Exponential-e posted Q1 numbers this week giving us another window into the European infrastructure market, and more specifically into the managed networking and cloud side. They posted revenue of £97,4M, up an impressive 26% over the same period last year. The company has been seeing strong demand for cloud networking and managed services. With a new SD-WAN product in play and expansions of its presence outside of London, they are looking ahead to further growth as the year unfolds.

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Categories: Fiber Networks · Financials · Internet Backbones · Managed Services