euNetworks Reports First Quarter 2013 Results

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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About euNetworks

euNetworks is a bandwidth infrastructure company, owning and operating 17 fibre based metropolitan networks connected with a high capacity intercity backbone covering 53 cities in 17 countries. The company leads the market in data centre connectivity, directly connecting over 480 today. euNetworks is also a leading cloud connectivity provider, directly connecting to all key cloud platforms with access to additional platforms. The company offers a targeted 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.

Hannah Britt
Senior Director Marketing
Hannah Britt, Senior Director, Marketing & IR