euNetworks Reports Fourth Quarter and Full Year 2010 Results

Fourth Quarter 2010

  • Total revenue of €13.7m, up 49% from 4Q 2009
  • Recurring revenue of €10.9m
  • Gross profit of €9.6m, up 39% from 4Q 2009
  • Adjusted EBITDA of €1.8m
  • 28 new customers gained in the quarter

Full Year 2010

  • Total Revenue of €43.8m, up 32% from €33.1m in 2009
  • Recurring revenue of €39.2m, up 21% from €32.3m in 2009
  • Gross profit of €31.5m, up 30% from 24.2m in 2009
  • Gross margin of 72%, down from 73% in 2009
  • Adjusted EBITDA of €(0.9)m, improving from €(1.2)m in 2009
  • 82 new customers gained in the year

London, UNITED KINGDOM 1 March 2011 – euNetworks Group Limited, announced strong quarterly and full year results, with further improvement in key fundamentals. Total revenues grew quarter over quarter by 23%, from €11.1m in 3Q 2010 to €13.7m in 4Q 2010, and by 49% from 4Q 2009. The Group achieved €10.9m in recurring revenues in the quarter, up 10% from 3Q 2010, with non recurring infrastructure sales of €2.8m (€1.2m in 3Q 2010). Gross profit for the quarter increased by 39% year on year to €9.6m, and by 20% from the preceding quarter. Gross margin for the quarter was 70%. Underlying gross margin, excluding non recurring infrastructure sales, was 72%, up from 71% in 3Q 2010. The Group delivered positive adjusted EBITDA(1) in the quarter of €1.8m, up from €0.8m in 3Q 2010.

For the full year, the Group grew total revenues by 32% to €43.8m, with recurring revenues of €39.2m, up 21% from 2009. Network revenues increased significantly from 2009, growing by 55% to €30.4m, with recurring network revenues growing by 37% to €25.8m. Non recurring infrastructure sales in the year were €4.6m. Gross profit for the year increased by 30% to €31.5m. Gross margin was 72%, slightly lower than 73% in 2009, driven by non cash costs associated with non recurring infrastructure sales and lower margins from Internet Protocol (IP) revenues. Underlying gross margin, excluding non recurring infrastructure sales, was 72.7%. Adjusted EBITDA(1) in 2010 was €(0.9)m following two consecutive quarters of positive quarterly adjusted EBITDA. The Group remains focused on this trend in quarters to come, whilst continuing to invest to drive top line revenue growth.

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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 51 cities in 15 countries. The company leads the market in data centre connectivity, directly connecting over 440 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.