For the quarter ended 31 March 2013:
- Recurring revenue of €24.8m, improving 8% from 1Q 2012
- Gross profit of €18.0m, improving 18% from 1Q 2012
- Gross margin of 72.4%, improving from 66.5% in 1Q 2012
- Adjusted EBITDA of €5.7m, improving from €2.1m in 1Q 2012
- Proxy Cash Flow of €2.1m, improving from €(6.0)m in 1Q 2012
- 25 new customers added
- 33 new buildings brought on-net
London, UNITED KINGDOM – 9 May 2013 euNetworks Group Limited, a unique Western European provider of bandwidth infrastructure services, announced results for the three months ended 31 March 2013. The Group reported another strong quarter, with significant improvement in gross margin, Adjusted EBITDA1 and proxy cash flow.
Recurring revenue improved 8% year over year, to €24.8m in 1Q 2013. Adjusted EBITDA was €5.7m in 1Q 2013, improving 171% from 1Q 2012 and 14% from 4Q 2012.
Gross margin for the quarter was 72.4%, increasing from 66.5% in 1Q 2012 and 71.2% in 4Q 2012. Year on year and sequential gross margin improvement in 1Q 2013 reflected the Group’s continued focus on high margin new sales. As with previous quarters, new sales continued to deliver gross margins of greater than 80% through the period.
“The Group’s discretionary capital investment was lower than in 1Q 2012 at €3.6m, but we plan to increase capital expenditure over the course of the year, particularly to enable further connections to data centres,” said Brady Rafuse, Chief Executive Officer of euNetworks. “Additionally, the secured debt funding announced on 8 May 2013, enables euNetworks to deliver more bandwidth infrastructure services to growing in-place and new customers.”
“As I mentioned last quarter, Adjusted EBITDA growth and utilising discretionary capital efficiency, is the primary measure for value creation in our business. Steadily improving operating efficiency and the leverage of increasing customer demand will enable euNetworks to deliver real value creation over time. We remain focused on this through 2013.”
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