euNetworks Reports Third Quarter Results

Third Quarter 2010

• Total revenue of €10.3 million, up 40% from 3Q 2009
• Recurring Revenue of €9.1 million
• Gross profit of €8.0 million
• Adjusted EBITDA of €0.8 million
• 25 new customers gained in the quarter

London, UNITED KINGDOM – 11 November 2010 euNetworks Group Limited (SGX: H23.SI), announced total revenues for the third quarter of €10.3 million, up 40% from 3Q 2009 and 11% on 2Q 2010. The Group achieved €9.1 million in recurring revenues in the quarter, up 24% from 3Q 2009, with €1.2 million of one offs. Gross profit for the quarter increased by 38% year on year to €8.0 million, and by 7% on the preceding quarter. Gross margin dropped slightly to 77% in the quarter from 80% in 2Q 2010. This was largely due to the timing of costs associated with the setting up of new euTrade routes in advance of taking on revenue and also certain one-off costs relating to Internet Protocol (IP) Transit. The Company continued to carefully manage costs while growing revenues, achieving positive Adjusted EBITDA1 of €0.8 million for the quarter.

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