Lots of earnings reports out this morning, apparently it’s a popular day. Over in Europe, euNetworks posted a strong growth quarter in the bandwidth infrastructure space. Here are their numbers in some context:
| in millions of €, UOS | Q2/16 | Q3/16 | Q4/16 | Q1/17 | Q2/17 |
|---|---|---|---|---|---|
| Revenue | 32.2 | 31.8 | 32.3 | 32.6 | 33.8 |
| Adj. EBITDA | 10.7 | 10.8 | 10.6 | 10.7 | 12.5 |
| Normalized Adj EBITDA | 11.1 | 11.0 | 11.7 | 11.3 | 12.1 |
| Norm. Adj EBITDA margin | 34.5% | 34.6% | 36.2% | 34.7% | 35.8% |
| Capital Expenditures | 16.1 | 11.9 | 16.5 | 14.2 | 16.9 |
| Proxy Cash Flow | (5.6) | (1.1) | (5.9) | (3.5) | (4.4) |
Recurring revenue from fiber, waves, and Ethernet was up 11% over the same period last year, more than offsetting both legacy declines and adverse currency impacts. Normalized adjusted EBITDA rose above $12M for the first time, with margins above 35%.
Capex remained at the high levels they have been, hitting 50% of revenue again. euNetworks is pouring lots of resources into adding depth, breadth, and diversity to its fiber infrastructure. They have commenced a number of new investment initiatives in the metro and longhaul during the quarter after polishing off the London/Slough, Manchester, and German longhaul projects, although they’re saving the details on the new projects for later.
We had euNetworks CEO Brady Rafuse on here just a couple weeks ago talking about the company’s approach to the European infrastructure business.
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Categories: Financials · Metro fiber
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