Business Wire

euNetworks Performance Update for Second Quarter 2017

3.8.2017 15:27 | Business Wire

Jaa

euNetworks is a European facilities based horizontally integrated bandwidth infrastructure provider that sells focus products to target customers. Our key drivers of bandwidth growth are data centre and cloud connectivity.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170803005655/en/

Q2 2017 performance update (Photo: Business Wire)

Q2 2017 performance update (Photo: Business Wire)

In the second quarter euNetworks continued its strong growth trajectory. Total revenue grew 5% from Q2 2016 reaching €33.8m, with recurring revenue from the focus products of Fibre, Wavelengths and Ethernet up 11% from Q2 2016, despite adverse currency impact. Adjusted EBITDA grew 17% from Q2 2016.

Capital investment in Q2 2017 was €16.9m, up 5% from Q2 2016. The majority of capital invested in the quarter was allocated to specific customer projects. We commenced a number of new investment initiatives to expand our addressable market, with these metro and long haul projects due to be available for service in Q3 and Q4 2017. We also completed some key investment projects:

  • The new build of a high fibre count network from Slough to Central London went live on the 28 April. This unique route is the shortest route between Slough and London, offering the lowest latency access to key exchanges via our euTrade service. It is also fully diverse from traditional routes available in the market. Slough is an important data centre hub for our customers in addition to being a key trading location for financial services organisations.
  • Investment in our German long haul network, delivering highly differentiated, unique and multi-route 100G long haul options for our customers to connect between our metro cities. Additional development phases to our Pan German footprint are currently underway following the completion of work in 1H 2017.
  • Manchester fibre metro build and the roll out of DC Connect in Manchester is near completion. This brings our operating metro count to 14 across Europe, with 7 of these cities enabled with DC Connect.

euNetworks delivered solid sales performance in 1H 2017 and Q2 2017. The new network service capabilities along with the additional sales resource added in Q1 2017, offers further sales growth opportunity in 2H 2017. Following high service installations in Q1 2017, service installations increased 9% quarter on quarter and 7% from Q2 2016. Disconnections were higher in the quarter due to a known and long time planned move by a customer, transitioning services out of our Amsterdam data centre and into their own. Average churn was subsequently 1.4% in Q2 2017, higher than 1.1% in Q2 2016 and up from last quarter.

Normalised adjusted EBITDA was up 9% from Q2 2016 and up 7% from Q1 2017, reaching €12.1m. Normalised adjusted EBITDA in the quarter was €0.4m lower than adjusted EBITDA due to some debt recovery activity in the business.

“The performance of the business remained strong through Q2 2017, with the completion of important network development projects and solid growth in revenue and adjusted EBITDA,” said Brady Rafuse, Chief Executive Officer of euNetworks. “Our core business focus is on three products for our customers – Fibre, Wavelengths and Ethernet – and we combine these into bandwidth solutions to meet specific customer needs. These focus products account for a high proportion of our new sales each month and recurring revenue growth across these products was 11% from Q2 2016.”

“We continue to focus on making sure we have the leanest production system possible, driving for zero defects. That enables us to offer fast and flexible service delivery and provisioning, being agile for our customers. We’re delivering on-net services to our customers in less than 30 days, unless they prefer to have a longer set delivery date. We’re focused on consistently over-delivering for our customers as we strive to be the category owner for bandwidth infrastructure services in Western Europe.”

“Customers are looking for bandwidth providers who can offer high capacity routes, delivering them the resiliency that they need. This may require as many as 5 fully diverse routes between two points in order to achieve that,” said Rafuse. “The network development projects we have undertaken to date are delivering that level of diversity, right across our European footprint. euNetworks has demonstrated an ability to respond quickly and creatively, both commercially and technically, to meet customers’ needs. With additional network development projects underway for specific customers, that will continue in 2H 2017. We also have some opportunistic network developments where we have a high degree of confidence we will gain good return from the investment. We remain focused on our product set, maintaining our lean production system, developing our network in ways that create value for our business and our customers, and continuing to grow the business.”

                                           
€m   Q1 2016   Q2 2016   Q3 2016   Q4 2016   Q1 2017   Q2 2017       12 mths -   12 mths -   %
                                30/6/2016   30/6/2017      
 
Total Revenue 30.6 32.2 31.8 32.3 32.6 33.8 123.1 130.5 6.1
Recurring Revenue 30.6 32.2 31.8 32.3 32.6 33.8 123.1 130.5 6.1
Adjusted EBITDA 9.8 10.7 10.8 10.6 10.7 12.5 38.5 44.6 15.9
Normalised Adjusted 9.9 11.1 11.0 11.7 11.3 12.1 39.7 46.1 16.3
EBITDA
LQA Normalised Adjusted 39.5 44.2 44.2 46.7 45.2 48.4 44.2 48.4 9.5
EBITDA exit
Capital Expenditure 11.5 16.1 11.9 16.5 14.2 16.9 49.7 59.5 19.8
Proxy Cash flow   (1.7)   (5.6)   (1.1)   (5.9)   (3.5)   (4.4)       (11.2)   (14.9)   n/a  

About euNetworks

euNetworks is a bandwidth infrastructure provider, owning and operating 14 fibre based metropolitan networks across Europe connected with a high capacity intercity backbone covering 48 cities in 13 countries. The company leads the market in data centre connectivity, directly connecting over 300 in Europe today. euNetworks is also a leading cloud connectivity provider, directly connecting 13 cloud platforms with access to a further 7. The company offers a portfolio of metropolitan and long haul services including Dark Fibre, Wavelengths, and Ethernet. Wholesale, finance, content, media, data centre and enterprise customers benefit from euNetworks’ unique inventory of fibre and duct based assets that are tailored to fulfil their high bandwidth needs.

euNetworks Group Limited is headquartered in London. For further information please visit www.eunetworks.com.

To view the euNetworks map go to http://map.eunetworks.com/.

Contact information

euNetworks Investor and Press Contact:
Hannah Fox
Senior Director Marketing
hannah.fox@eunetworks.com
+44 20 7952 1338 office
+44 7717 896 446 mobile

Tietoja julkaisijasta

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Tilaa tiedotteet sähköpostiisi

Haluatko tietää asioista jo ennen kuin ne uutisoidaan? Kun tilaat tiedotteemme tältä julkaisijalta, saat ne sähköpostiisi yhtä aikaa suomalaisen median kanssa. Tilauksen voit halutessasi perua milloin tahansa.

Lue lisää julkaisijalta Business Wire

The Valence Group Issues Fairness Opinion to SK Capital in Connection with Archroma18.8.2017 16:30Tiedote

The Valence Group has provided a fairness opinion to SK Capital Partners, LP in connection with its recapitalization of Archroma, including investments made by various affiliates of SK Capital. Terms of the transaction were not disclosed. About SK Capital SK Capital is a private investment firm focused on the specialty materials, chemicals and pharmaceutical sectors. The firm builds strong and growing businesses that generate substantial long-term value for its investors. SK Capital utilizes its industry, operating and investment experience to identify opportunities to transform businesses into higher performing companies with improved strategic positioning, growth, profitability and risk profiles. The firm currently has approximately $1.9 billion of assets under management and its portfolio companies generate revenues of over $5.0 billion annually and employ approximat

Biker Summer 2017 campaign: What’s happening during Biker Summer 2017? Moto-tyres.co.uk is giving away exciting prizes!18.8.2017 12:22Tiedote

Whether it’s a short weekend break or a long-distance tour – once again this year Moto-tyres.co.uk is asking bikers from 10 countries about their dream destinations and longest journeys as part of its “Biker Summer 2017” campaign. To ensure than nothing gets in the way of your next tour, the two-wheeler tyre store from Delticom, Europe’s leading online tyre dealer, is entering anyone who completes the survey before 30 September 2017 into a prize draw to win some great biking accessories. Simply answer three short questions about your plans for bike tours this year (don’t forget to provide your name and email address), and with a bit of luck, you might win one of these great prizes. Up for grabs are a GARMIN motorbike GPS system, a GoPro camera with helmet bracket and five 200-Pound vouchers for new motorbike tyres from the online store – thanks to the product range at Moto-tyres.co.uk, eve

Lenovo Continues to Gain Momentum in First Quarter FY 2017/1818.8.2017 03:04Tiedote

Behind the strength of its 3-wave strategy, Lenovo’s business transformation continued to gain traction during the first quarter, delivering solid profitability in its core PC and smart devices business, and revenue and profit improvements in targeted growth areas, including the data center and mobile businesses. Fueled by new investments in people and products, Lenovo’s Data Center Group (DCG) introduced the most comprehensive product lineup in its history, with the new ThinkSystem and ThinkAgile portfolio, and continued to build out its end-to-end sales organization. Similarly, Lenovo’s Mobile Business Group launched significant new products led by the Moto Z2 Force, available now on all major U.S. carriers, and ramped up its branding efforts worldwide. “In the first quarter this fiscal year, we had stable performance as we executed our 3-wave strategy with commitment. We

Spirent Tests Wi-Fi Network Performance with O2 at the Coca-Cola London Eye17.8.2017 18:57Tiedote

Spirent Communications plc (LSE:SPT), today announced its Landslide E10 network test platform has been used with O2 to validate the Wi-Fi network performance and capacity at the Coca-Cola London Eye, before the launch of a new smartphone application last month. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170817005758/en/ Spirent Landslide E10 helped O2 validate Wi-Fi performance and capacity at the Coca-Cola London Eye, before the launch of a new smartphone application last month. (Photo: Busines Wire) Merlin Entertainments plc, operator of the London Eye, wanted to measure its Wi-Fi network performance, to ensure its infrastructure could provide an excellent experience for users of the new app, which puts increased demands on the Wi-Fi network. “The London Eye is a global attractio

Watch BizWireTV: A Camera You Can Wear and Krispy Kreme’s Famous Donuts Get Eclipsed with Chocolate17.8.2017 15:08Tiedote

On BizWireTV, catch some Quick Biz Hits and see the latest in Star Power. Also see what’s happening in the startup world with the Accelerator Report, featuring the VC Watch and this week’s Startup Standout. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170817005305/en/ BizWireTV is hosted by Jordyn Rolling (Photo: Business Wire Now you can watch BizWireTV, and the latest breakthroughs in tech from the biggest brands, on any screen you want by downloading the new app through the Apple TV and iPhone App Store and Google Play for Android devices. Top of the Wire Introducing FrontRow: the camera re-invented. Watch BizWireTV to see more disruptors as well as the top 5 trending stories of the week! A core c

PsiOxus Therapeutics Announce Two New Board Appointments: New Board Appointments Strengthen Company’s US Presence17.8.2017 10:00Tiedote

PsiOxus Therapeutics, Ltd. (PsiOxus) today announced the appointment of Charles Rowland and Duncan Higgons to the Board of Directors as part of an ongoing drive to expand in the US. Charles Rowland was most recently the President and Chief Executive Officer (CEO) of Aurinia Pharmaceuticals, a clinical stage pharmaceutical company focused on the global lupus nephritis market. Prior to this, he served as the Vice President and Chief Financial Officer (CFO) of ViroPharma, during which time the company grew into a global biopharmaceutical business with $500 million in annual revenues until it was acquired by Shire plc for $4.2 billion. Before joining ViroPharma, Mr. Rowland was executive Vice President, CFO, and interim co-CEO, for Endo Pharmaceuticals. In his earlier career, Charles held finance and operational positions at Biovail Pharmaceuticals, Breakaway Technologies, Pharmacia

Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.

Tutustu uutishuoneeseemme