For the quarter ended 31 December 2012:
- Recurring revenue of €24.5m, improving 10% from 4Q 2011
- Gross profit of €17.4m, improving 14% from 4Q 2011
- Gross margin of 71.2%, improving from 64.7% in 4Q 2011
- Adjusted EBITDA of €5.0m, improving materially from €0.1m in 4Q 2011
- Proxy Cash Flow of €(0.0)m, improving from €(13.7) in 4Q 2011
- 33 new customers added
- 59 new buildings brought on-net
For the year ended 31 December 2012:
- Total recurring revenue of €94.8m, improving 38% from 2011
- Gross profit of €64.5m, improving 30% from 2011
- Gross Margin of 68.0%, down from 69.0% in 2011
- Adjusted EBITDA of €12.9m, improving from €5.9m in 2011
- Proxy Cash Flow of €(14.9)m, improving from €(25.9)m in 2011
- 118 new customers added in 2012, compared to 111 added in 2011
- 279 new buildings brought on-net, compared to 268 in 2011
London, UNITED KINGDOM – 27 February 2013 euNetworks Group Limited, a unique Western European provider of bandwidth infrastructure services, announced results for the three months ended, and full year ending 31 December 2012. The Group reported strong financial performance for the year with continued improvement in recurring revenue, Adjusted EBITDA1 and proxy cash flow.
Recurring revenue improved 10% year over year, to €24.5m in 4Q 2012. Adjusted EBITDA was €5.0m in 4Q 2012, improving materially from 4Q 2011 and 52% from 3Q 2012. Absolute capital spending was reduced and allocated increasingly toward customer sales throughout the year. Gross margin for the full year was 68.0%, down from 69.0% in 2011, reflecting the impact of acquisitions completed in 2Q and 3Q 2011.
Gross margin for the quarter was 71.2%, improving from 64.7% in 4Q 2011 and from 67.1% in 3Q 2012. Year on year and sequential gross margin improvement in 4Q 2012 reflected the Company’s continued focus on high margin new sales. New sales delivered gross margins of greater than 80% throughout 2012.
“The Group maintained its growth and scaling momentum reported quarter over quarter throughout 2012,” said Brady Rafuse, Chief Executive Officer of euNetworks. “As integration and rationalisation wound down in 1H 2012, customer bandwidth demand steadily increased. This enabled our discretionary capital investment to be shifted even more towards extending network reach for our customers. We saw growing opportunity with both our existing customer base and new customers and segments.”
“Whilst our financial metrics continued to improve, churn remained higher than previously seen through 2012. We acknowledge churn is a component of our business which needs to be managed aggressively. Adjusted EBITDA growth, utilising discretionary capital efficiently, is the primary measure for value creation in our business. Steadily improving operating efficiency and leveraging increasing customer demand will enable euNetworks to deliver real value creation over time.”
DOWNLOAD
