Q3 2016 euNetworks Results

London, UNITED KINGDOM – 10 November 2016 – euNetworks Group Limited, a provider of bandwidth infrastructure services in Europe, announced results for the three months ended 30 September 2016.

  • New sales of €869k
  • Service installations of €664k
  • Disconnections reached €405k, with average churn of 0.9%
  • Monthly incremental service revenue of €257k
(€k) Q3 2016 Q3    2015 % change Q2 2016 %  change
New Sales 869 898 (3) 937 (7)
Installations 664 699 (5) 904 (27)
Monthly Incremental Service Revenue 257 166 55 254 1


(€m) Q3 2016 Q3 2015 % change Q2 2016 %   change
Total Revenue     Recurring Revenue 31.831.8        29.629.6 77 32.232.2 (1)(1)
Gross Profit 24.9 23.0 8 25.2 (1)
Gross Profit Margin % 78.1% 77.6% 1 78.4% (0.4)
Adjusted EBITDA(1) 10.8 8.2 33 10.7 1
Capital Expenditure 11.9 11.3 n/a 16.1 n/a
Proxy Cash Flow(2) (1.1) (3.1) n/a (5.4) n/a
  1. Adjusted EBITDA means EBITDA before the deduction of share option expense.
  2. Proxy cash flow is calculated as Adjusted EBITDA less capital expenditure.

Recurring revenue was €31.8m in Q3 2016, growing 7% from Q3 2015 and growing 9% year to date versus the same period in 2015. Gross profit was €24.9m, up 8% from Q3 2015 and up 10% year to date. Gross margin was 78.1% in Q3 2016, improving from 77.6% in Q3 2015. Adjusted EBITDA was €10.8m in Q3 2016, improving by 33% from Q3 2015 and by 31% year to date. Capital expenditure supporting revenue growth was €11.9m in the quarter as euNetworks continues to invest for growth. This contributed to proxy cash flow of €(1.1)m in Q3 2016. “Sales continued to be strong through Q3 2016 after two record quarters,” said Brady Rafuse, Chief Executive Officer of euNetworks. “As previously noted, Q2 2016 performance has benefitted by some dual running euTrade services as a result of the move of a major trading exchange. Operating performance remained strong in Q3 2016 and on a constant currency basis, we have seen double-digit growth in recurring revenue this year. We continue to be pleased with our progress.” “Our capital expenditure was lower in Q3 2016 following the completion of network expansion projects to Marseille and Stockholm in Q2 2016. Further network investment projects are underway and are aligned with our customers’ bandwidth demands. We remain confident about the opportunities these bring us for further growth.”

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 430 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.