For the quarter ended 30 September 2013:
• Recurring revenue of €24.1m, in line with 3Q 2012
• Gross profit of €17.6m, improving 9% from 3Q 2012
• Gross margin of 72.9%, improving from 67.1% in 3Q 2012
• Adjusted EBITDA of €6.3m, improving from €3.3m in 3Q 2012
• Proxy Cash Flow of €(2.4)m, improving from €(3.2)m in 3Q 2012
• 25 new customers added, compared to 27 in 3Q 2012
• 26 new buildings brought on-net, with 1,011 total buildings connected
For the nine months ended 30 September 2013:
• Total revenue of €73.4m, improving 4% from 2012
• Gross profit of €53.3m, increasing 13% from 2012
• Gross margin of 72.5%, increasing from 67.1% in 2012
• Adjusted EBITDA of €18.0m, improving from €7.9m in 2012
• Proxy Cash Flow of €0.8m, improving from €(14.9)m in 2012
• Net loss of €(5.4)m, improving from €(27.1)m in 2012
• 70 new customers, compared to 85 in 2012
• 99 new buildings on-net, declining from 220 in 2012
London, UNITED KINGDOM – 7 November 2013 – euNetworks Group Limited (SGX: 5VT.SI), a unique Western European provider of bandwidth infrastructure services, announced results for the three months ended 30 September 2013 and for the nine months of 2013. For 3Q 2013 compared to 3Q 2012, the Group delivered materially improved gross profit and adjusted EBITDA1 on flat revenue performance, with churn offsetting new sales. Proxy cash flow also reflected improvement, with capital spending increasing, but at a lower rate than the improving operating performance. Year to date the Group reported similarly better results, with significantly more efficient operating performance and capital spending.
Gross margin for the quarter was 72.9%, increasing from 67.1% in 3Q 2012. Adjusted EBITDA was €6.3m in the quarter, improving 91% from 3Q 2012 and 5% from 2Q 2013. The Group’s continued focus on high gross margin sales and cost management will result in further performance improvement.
“Following higher churn in 2Q 2013 of 2.8%, as we anticipated, churn declined but still remained high in 3Q 2013, reaching 2.2%, “ said Brady Rafuse, Chief Executive Officer of euNetworks. “We are focused on improving churn, with a targeted customer account strategy in place to do so.”
“Discretionary capital expenditure increased to €8.7m in the quarter, up from €6.5m in 3Q 2012 and €4.9m in 2Q 2013,” said Rafuse. “This investment enables additional connections to high bandwidth consuming data centres and a number of strategic network development projects have been launched. These include the new fibre based London to Stockholm ultra low latency route for euTrade, the addition of a London to Moscow route, and the London metropolitan network fibre expansion. These and other projects will deliver more bandwidth infrastructure services to grow in-place and new customers in the future.”
“Overall our proxy cash flow position has significantly improved over the last year, reflecting the benefits of continued scaling. The increase in capital expenditure in the quarter did however reduce proxy cash flow to €(2.4)m from €1.1m in 2Q 2013 and we anticipate network investment projects to continue through to 1Q 2014. This investment will deliver incremental organic growth for the business," said Brady Rafuse.
5 November 2013 Duct based network investment and build, delivering larger metropolitan network and enabling full suite of product availability from more locations for incremental growth. Developing strategic relationships with data centres, connecting a further 25 facilities with fibre.
London, UNITED KINGDOM – 5 November 2013 – euNetworks Group Limited (SGX: 5VT.SI), a unique bandwidth infrastructure provider, today announced it is undertaking a significant London network expansion. The Company is adding Slough to its fibre based metropolitan network to the West of London, with diverse routes across London. Slough and the surrounding area is a thriving connectivity hub for a growing number of high bandwidth consuming sectors, with significant data centre presence serving the London, UK and international market. With this strategic investment, euNetworks will have developed additional high density fibre-rich infrastructure with direct connection to a further 25 key data centres.
euNetworks is delivering this expansion through a mixture of utilising hitherto unused network assets, new construction and duct procurement. Altogether, euNetworks will own and operate over 300 route km of duct and fibre infrastructure in its London metropolitan network at the end of 4Q 2013. As in all of euNetworks global services areas, a full suite of bandwidth infrastructure services including Fibre, Wavelengths, Ethernet and Internet will be offered.
“We secured debt funding earlier this year with the first priority to drive incremental organic growth,” said Brady Rafuse, Chief Executive Officer of euNetworks. “Our London expansion is one of a number of network development projects now underway across our European footprint.”
“This duct-based expansion enables effectively unlimited bandwidth potential between even more customer and data centre locations,” said Rafuse. “We have already signed a number of customer contracts. The first buildings will be connected in December 2013.”
For further information and to view the expanded London metropolitan network go to www.eunetworks.com/londonmetro.
30 October 2013 New ultra low latency Fibre based solution to Stockholm, delivering market leading latency. Addition of market leading route to Moscow, further strengthening the euTrade portfolio.
London, UNITED KINGDOM – 30 October 2013 – euNetworks Group Limited (SGX: 5VT.SI), a unique bandwidth infrastructure provider, today announced it has launched a Fibre based solution from London to Stockholm, with dedicated low latency dense wave division multiplexing (DWDM) technology delivering market leading latency. euNetworks first began offering ultra low latency services to Stockholm in 4Q 2010.
euNetworks has also added Moscow to its euTrade service portfolio, connecting from Moscow back to London on its dedicated finance network. This route also launches with market leading latency, offering a round trip performance of 38.19 milliseconds (Interxion London data centre to M1 Moscow MICEX colocation area) with further optimisations planned. The offer of low latency cross-connection in the M1 facility to MICEX also overcomes a significant obstacle for many customers.
Such network investment demonstrates euNetworks’ commitment to this important market, following strong demand from its financial services customers and also the Company’s industry leading deployment capability, reducing the previous leading latency on the London to Stockholm route by 5%. The straight point-to-point route from London to Stockholm offers a round trip time of less than 21 milliseconds.
“Demand for low latency connectivity to Stockholm continues to increase, prompting our fibre investment on this important route,” said Brady Rafuse, Chief Executive Officer of euNetworks. “The addition of Moscow means that today, euNetworks delivers leading low latency euTrade services across our London Metropolitan network, through to Slough and Basildon, to Frankfurt, Stockholm, Zurich, Milan and Moscow, directly to multilateral trading facilities (MTFs). We continue to see great success and strong growth from our euTrade service portfolio, and as a bandwidth infrastructure provider, we will continue to invest to deliver the network performance that our clients need to maximise their business potential.”
5 September 2013 Bandwidth services to connect Infinity SDC Limited data centres in Romford and Slough. Supporting rapid connectivity service to Infinity’s customers, with 10 day service delivery.
London, UNITED KINGDOM – 5 September 2013 – euNetworks Group Limited (SGX:5VT.SI) today announced it has partnered with Infinity SDC Limited to deliver connectivity that will link Infinity’s data centres in Romford (north east of London) and Slough (to the west of London). This multi-year agreement will enable Infinity to provide scalable bandwidth to their customers with a 10 day service delivery. This is being marketed as ‘Infinity Data Centre Network’ (DCN). euNetworks will provide Wavelengths, Fibre Channel and Ethernet into their sites. It also delivers diverse building entry and fibre routes at both sites.
Infinity has a portfolio of data centres in and around London. They provide rack-level colocation, private suites, scalable data halls and dedicated data centres. Their resilient and secure facilities support critical operations for some of the world’s most successful companies. Their customers include some of the UK’s leading financial organisations, cloud vendors, global insurers and telecommunications companies.
“We recognise that connectivity is an essential part of today’s data centre offering and we are delighted to partner with euNetworks to deliver our new DCN,” said Nigel Stevens, Chief Marketing Officer of Infinity. “The infrastructure that euNetworks is delivering means we can provide truly scalable connectivity at incredibly short notice, which is a huge advantage for our customers.”
“Infinity is an award-winning data centre provider who continue to develop their facilities in line with what their customers need today and for the future,” said Uwe Nickl, Chief Marketing Officer of euNetworks. “Connectivity that is scalable in support of ever-growing business needs is fundamental to a company such as Infinity and their product. We are excited to be working with them on this important and strategic project and remain committed to further roll out in additional locations in the future.”
For the quarter ended 30 June 2013:
• Recurring revenue of €24.5m, improving 6% from 2Q 2012
• Gross profit of €17.7m, improving 14% from 2Q 2012
• Gross margin of 72.0%, improving from 67.1% in 2Q 2012
• Adjusted EBITDA of €6.0m, improving from €2.5m in 2Q 2012
• Proxy Cash Flow of €1.1m, improving from €(5.7)m in 2Q 2012
• 20 new customers added, compared to 29 in 2Q 2012
• 40 new buildings brought on-net, with 985 total buildings connected
For the half year ended 30 June 2013:
• Total revenue of €49.3m, improving 7% from 1H 2012
• Gross profit of €35.7m, increasing 15.4% from 1H 2012
• Gross Margin of 72.2%, increasing from 66.8% in 1H 2012
• Adjusted EBITDA of €11.7m, improving from €4.6m in 1H 2012
• Proxy Cash Flow of €3.2m, improving from €(11.7)m in 1H 2012
• Net loss of €(3.5)m, improving from €(18.5)m in 1H 2012
• 45 new customers, compared to 58 in 1H 2012
• 73 new buildings on-net, declining from 157 new in 1H 2012
London, UNITED KINGDOM – 12 August 2013 – euNetworks Group Limited (SGX: 5VT.SI), a unique Western European provider of bandwidth infrastructure services, announced results for the three months ended 30 June 2013 and for the first half of 2013. The Group reported steady improvement, with strong performance in gross margin, Adjusted EBITDA1 and proxy cash flow.
Recurring revenue increased 6% year over year, to €24.5m in 2Q 2013 and by 7% from 1H 2012 to 1H 2013. Adjusted EBITDA was €6.0m in 2Q 2013, improving 140% from 2Q 2012 and 5% from 1Q 2013. For 1H 2013, Adjusted EBITDA was €11.7m, increasing from €4.6m in 1H 2012.
Gross margin for the quarter was 72.0%, increasing from 67.1% in 2Q 2012. Year on year improvement reflected the Group’s continued focus on high margin new sales. Gross margin on new sales were between 78% and 82% in recent months, reaching 80% for the 1H 2013.
Discretionary capital investment was higher in 2Q 2013 than 1Q 2013, but still lower than investment levels in 2012. euNetworks plans to increase capital investment over the balance of the year, utilising the debt raised on 8 May 2013. This will further enable connections to data centres and strategic network developments, delivering more bandwidth infrastructure services to growing in-place and new customers in the future.
“Our proxy cash flow position significantly improved through the last year, reflecting the benefits of the continued scaling and progress toward our goal of having a lean production system,” said Brady Rafuse, Chief Executive Officer of euNetworks. “With capital investment set to increase through the remainder of the year, this will have an effect on our proxy cash flow, but this investment is being undertaken to grow the business organically.”
“As well as driving the business forward commercially and operationally towards scale, it has also been a busy quarter for corporate activity. The 2013 Convertible Bond matured on 1 April 2013, with 98.4% of the Convertible Bonds converted to shares on 3 April. A consolidation of 50 existing shares into one ordinary share was approved by shareholders on 24 April and completed on 31 May, signifying a first step in simplifying the Company’s capital structure. Finally, we secured a debt funding commitment on 8 May, with those funds now being invested to stimulate organic growth, as I have mentioned above, and supporting our effort to grow inorganically should opportunities surface.”
8 August 2013 euNetworks Group Limited (SGX: 5VT.SI), a unique bandwidth infrastructure provider, today announced it has connected the 1,000th building to its fibre network marking a significant milestone for the company.
London, UNITED KINGDOM – 8 August 2013 – euNetworks Group Limited (SGX: 5VT.SI), a unique bandwidth infrastructure provider, today announced it has connected the 1,000th building to its fibre network marking a significant milestone for the company. On 30 July 2013, euNetworks connected a building in London, occupied by a number of enterprise companies. This was the 149th building in London to go on-net.
euNetworks owns and operates 13 densely fibred city networks across Western Europe, along with a high capacity intercity backbone providing connectivity between these cities. euNetworks now provides fibre based connectivity to 226 data centres, 128 wireless tower sites and 646 enterprise office buildings and other locations. 133 of these data centres and enterprise buildings also have at least one wireless tower connected. Connecting bandwidth consuming buildings is what drives further traffic onto the networks, fuelling growth for euNetworks.
“In 2009 euNetworks made the commitment to focus investment in fibre based building connectivity across Europe,” said Brady Rafuse, Chief Executive Officer of euNetworks. “This is consistent with our infrastructure based plan to enable customers to enjoy virtually unlimited bandwidth access which, in turn, drives simpler and improved operating performance and increasing gross profits. Since 2009 we have increased on-net building count by nearly four times."
“We believe that every business can benefit from bandwidth without limits. As more people, companies, applications and devices take advantage of the many benefits of being connected, bandwidth demand only increases. These trends underpin our investment strategy, indicating a large and growing need for deep fibre networks in densely populated city centres in Europe’s major cities.”
euNetworks sells high bandwidth products to other telecom companies and partners to help them meet the needs of their own customers, from large wholesale carriers, mobile operators, regional service providers and integrators. euNetworks also delivers solutions to enterprise customers, from online retailers, manufacturers, and logistics companies, to financial services and media agencies.
To find out whether your building is on-net, or see how close you are to euNetworks’ fibre network, go to www.eunetworks.com/location-finder
11 July 2013 euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: 5VT.SI), today announced it has partnered with Deutsche Vermögensberatung (DVAG), delivering connectivity linking up the company’s education centres with hub sites in Germany.
London, UNITED KINGDOM; Frankfurt am Main, GERMANY – 11 July 2013 – euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: 5VT.SI), today announced it has partnered with Deutsche Vermögensberatung (DVAG), delivering connectivity linking up the company’s education centres with hub sites in Germany. euNetworks has been delivering bandwidth services to DVAG since 2012, at that time, supplying a Dark Fibre ring in Frankfurt. This latest multi-year agreement further develops that bandwidth solution, supplying Ethernet services in Frankfurt am Main and Aachen, North Rhine-Westphalia in the first instance, with further locations to follow.
euNetworks’ Ethernet is in this case an any-to-any service. The solution is based on a Virtual Private LAN Service (VPLS), allowing the Ethernet to expand beyond point-to-point connectivity, using a single Ethernet access circuit to reach multiple destinations. This makes bandwidth consumption more efficient and means adding sites becomes ‘plug and play’. Network traffic can be prioritised based on specific needs and the service is suitable for all types of traffic.
Deutsche Vermögensberatung (DVAG) is Germany's largest stand-alone financial services distributor. Nearly 37,000 financial advisors of DVAG support 6 million customers in all questions concerning financial planning, insurance, investment and finance. Deutsche Vermögensberatung offers comprehensive financial advisory for large parts of the population. The headquarters of DVAG provides and operates the central IT infrastructure for the financial advisors, who are spread across Germany.
“We needed a solution that was able to scale with our needs, catering to our high activity periods on any given day,” said Matthias Weiß, Senior IT-Consultant of Deutsche Vermögensberatung. “We needed a specialist bandwidth infrastructure provider with a localised approach but footprint across multiple cities and regions, ensuring our centralised applications are freely available to our geographically dispersed education centres. euNetworks offers us both that solution and reliability in infrastructure as we move our business into the digital 21st century. We have been truly impressed with their capability, dedication and professionalism in delivering this connectivity solution to us.”
“Our metropolitan networks are designed with this kind of solution in mind,” said Uwe Nickl, Chief Marketing Officer of euNetworks. “Connectivity that is scalable in support of ever-growing business needs is fundamental to a company such as DVAG. We are excited to be working with them on this important and strategic project and remain committed to further roll out in additional locations in the future.”
26 June 2013 euNetworks Group Limited (SGX: 5VT.SI), today announced its continued relationship with NDIX, the Dutch-German Internet Exchange
- Partnership with regional Internet Exchange and Carrier
- euNetworks strengthens existing relationship with the provision of Dark Fibre and Ethernet Services
- Supporting connectivity needs between the Netherlands and Germany and between sites in key cities
London, UNITED KINGDOM; Amsterdam THE NETHERLANDS – 26 June 2013 –euNetworks Group Limited (SGX: 5VT.SI), today announced its continued relationship with NDIX, the Dutch-German Internet Exchange. euNetworks has supported NDIX with its facilities based infrastructure services since 2012, with this multi-year deal extending the partnership, delivering Dark Fibre and Ethernet services.
NDIX is a platform for broadband and IT services offering a digital marketplace, an Internet Exchange, a platform of broadband interconnections and ultimately, knowledge transfer. Its network comprises interlinked locations in the Netherlands and Germany which collectively serve as its marketplace. The new services provided by euNetworks support the increasing demand for high bandwidth data connection between their data centres and other key sites for NDIX and their end customers.
“A reliable infrastructure is vital to NDIX, as we strive to serve our member’s and customer’s growing needs,” said Jeroen van de Lagemaat, Managing Director of NDIX. “euNetworks’ fibre network in Amsterdam and Ethernet service capability, provides the scalable network footprint and bandwidth we need to support our platforms. They continue to understand our growing connectivity requirements, and that of our customers.”
“We are delighted to have expanded our relationship with NDIX,” said Uwe Nickl, Chief Marketing Officer of euNetworks. “We appreciate the importance of the infrastructure we are delivering to NDIX and how our service performance and reliability impacts both their network and their customers’. “We thank NDIX for their support of euNetworks and look forward to a growing partnership, enabling knowledge transfer in an increasingly connected world.”
29 May 2013 Supporting Hofmeir Media's expanding network infrastructure demands. euNetworks provides fibre backbone connecting key data centres in Munich.
London, UNITED KINGDOM; Frankfurt am Main, GERMANY – 29 May 2013 euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), today announced it has signed a partnership with Hofmeir Media GmbH, covering the provision of bandwidth infrastructure in Munich. Under the terms of this new multi-year agreement, euNetworks has delivered Dark Fibre services to Hofmeir Media, enabling backbone development and the connection of new data centre sites in the city.
Hofmeir Media GmbH is service company and technology provider headquartered in Munich. Today they deliver their services to small and medium sized enterprise customers through four key divisions- offering data centre and colocation in 3 locations in Munich, Internet Protocol Television (IPTV) and streaming solutions, Voice Over IP services and Retail and discounted web hosting and domain services. This new backbone is key to all of these divisions.
"As our business continues to grow, we need to make sure that our underlying infrastructure is reliable, delivers a backbone solution connecting the right places and buildings and can scale as we do," said Stefan Hofmeir, Chief Executive Officer of Hofmeir Media GmbH. "We selected euNetworks due to the quality of their network, fibre availability, product set and market reputation. Our customers rely on us for their core technology needs so our network needs to perform with that in mind. We are confident that with euNetworks as our connectivity partner, we can continue to grow our business and support our customers."
In the city of Munich, euNetworks owns and operates a densely fibred mesh-based city network that delivers scalable bandwidth services to enterprise and wholesale customers.
23 May 2013 euNetworks selected due to service performance and reputation as a leading connectivity provider with the Financial Services community. Service supports Hudson Fiber's growing European bandwidth requirements from its U.S. customer base.
London, UNITED KINGDOM- 23 May 2013 -euNetworks Group Limited (SGX: H23.SI), today announced it has signed a new agreement with Hudson Fiber Network (HFN), the leading U.S. based transport and Internet Protocol (IP) service provider specialising in delivering network solutions to the financial community. Under the terms of this new agreement, euNetworks is delivering its euTrade service portfolio to HFN, with ultra low latency connection between an exchange in central London and an exchange in Slough, to the west of London.
Hudson Fiber Network, established in 2002, is headquartered in Paramus New Jersey, delivering data transport solutions to its growing customer base. With an increasing number of its U.S. clients needing to access trades in the European equity markets, HFN was looking to partner with a European bandwidth provider with considerable technical expertise and understanding of the needs of this important bandwidth consuming community. Today euNetworks offers market leading latency performance from all major capital markets across Europe, enabling customers with direct and high bandwidth connectivity via the euTrade service portfolio.
"We selected euNetworks to deliver this ultra low latency connectivity solution in London due to their service performance, reputation and ability to rapidly deliver this route," said Brett Diamond, President of HFN. "As we develop our European presence to serve our client's needs, we need to be working with a network provider who we trust and who can continue to deliver low latency solutions as our needs grow. We are confident euNetworks is the right partner for our business."
"HFN is focused on continuing to deliver efficiency and high performance to their clients, whether in the U. S., Europe or another region," said Uwe Nickl, Chief Marketing Officer of euNetworks. "We are delighted to be working with the HFN team and look forward to growing our relationship, further supporting their client's needs in Europe."
21 May 2013 euNetworks' Dark Fibre bundled with Norisco's IT solutions for service in London.
London, UNITED KINGDOM – 21 May 2013 -euNetworks Group Limited (SGX: H23.SI), today announced a new multi-year agreement and partnership with IT solutions provider Norisco. euNetworks was selected to deliver a high speed low latency network in London, providing a scalable and flexible bandwidth connection from a data centre to a new office location for Norisco's customer. This fibre connection was bundled with additional IT services from Norisco, as a full IT solution for 7digital, one of the world's leading open music platforms.
Norisco specialise in the delivery of IT solutions covering telecommunications, unified communications, networking, data centre and security, with a focus on dependable and innovative solutions for their customers. Norisco has developed strong and well-established relationships with vendors and support partners, enabling customers to benefit from reliable access to solutions from leading vendors through just one dedicated point of contact.
"At Norisco we focus on ensuring we have an intimate understanding of our customer's business so we can deliver them the best IT solution possible, with strong partners to support us," said Eamon Campbell, Managing Director of Norisco. "euNetworks share the same approach to customer support and have rapidly delivered a fibre infrastructure that effectively offers unlimited bandwidth to our customers."
"We are delighted to be working with Norisco," said Uwe Nickl, Chief Marketing Officer of euNetworks. "They have developed an approach to IT strategy that enables their customers to truly exploit their IT infrastructure investment as effectively as possible, enabling customers to focus on their core business. For a leading online media business such as 7digital that's hugely important. Connecting 7digital's office to its key data centre on our facilities based infrastructure in London delivers 7digital with the bandwidth scalability required as demand for their digital music service and open platform only increases."
"Our business is centred on the provision of open access to the broadest catalogue of fully licensed, high quality digital music for consumers, developers and a wide range of partners around the world," said Paul Richards, Head of IT Infrastructure at 7digital. "Our IT platforms and connectivity solutions need to work and scale. The fibre connection provided by euNetworks gives us the flexibility and control we need, enabling enhanced online delivery by serving the growing bandwidth needs between our data centre and new office."
17 May 2013 Following launch of new Basildon to Frankfurt ultra low latency route in December 2012. Diverse route available from existing links in London to NYSE Euronext in Basildon.
London, UNITED KINGDOM – 17 May 2013 – euNetworks Group Limited (SGX: H23.SI), a pan-European bandwidth infrastructure provider, announced it has built a diverse route from London to Basildon (NYSE Euronext), supporting a growing connectivity requirement in the market. In December 2012, euNetworks launched its leading ultra low latency fibre route linking Basildon to Frankfurt. Since that time, euNetworks has leveraged this fibre route to support the many customer requests for a diverse route linking London to Basildon, with this connectivity service now live and supporting customer's bandwidth requirements from 100Mbps Ethernet through 10Gbps Wavelengths.
euNetworks offers market leading latency performance from all major capital markets across Europe, enabling customers with direct and high bandwidth connectivity via the euTrade service portfolio.
At the core of euNetworks capability as a bandwidth infrastructure provider, is its 13 fibre based city networks owned and operated across Western Europe. euNetworks' London metropolitan network enables customers to connect from their office building, a key data centre or exchange, through to NYSE Euronext with either Ethernet or Wavelengths services. This new route combines euNetworks' city based bandwidth expertise with its long haul ultra low latency network platform, delivering more route options to this important market.
"Basildon is a critical trading location with growing importance to the financial community," said David Selby, Vice President of Product and Strategy at euNetworks. "Being able to offer a diverse route out to Basildon from central London combined with our leading long haul ultra low latency capability to Frankfurt offers our customers yet another compelling reason to choose euNetworks to deliver their connectivity needs. Diversity in this market is increasingly important as customers require both low latency and high availability to fulfil their network requirements."
For the quarter ended 31 March 2013:
• Recurring revenue of €24.8m, improving 8% from 1Q 2012
• Gross profit of €18.0m, improving 18% from 1Q 2012
• Gross margin of 72.4%, improving from 66.5% in 1Q 2012
• Adjusted EBITDA of €5.7m, improving from €2.1m in 1Q 2012
• Proxy Cash Flow of €2.1m, improving from €(6.0)m in 1Q 2012
• 25 new customers added
• 33 new buildings brought on-net
London, UNITED KINGDOM - 9 May 2013 - euNetworks Group Limited (SGX: H23.SI), 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."
8 May 2013 €45 million available including €30 million commitment to be used primarily for incremental organic and inorganic growth
London, UNITED KINGDOM – 8 May 2013 – euNetworks Group Limited (SGX: H23.SI), today announced that it has entered into a term loan facilities agreement with Barclays Private Credit Partners Fund L.P.
Terms and conditions for the committed term loan facility including interest rate, total leverage incurrence test and delayed draw feature are favourable to market.
The term loan may be expanded to €45 million as organic or inorganic growth opportunities materialise. In addition, Barclays Private Credit Partners have reflected their commitment to euNetworks' business by retaining an option to participate in any equity fundraising if euNetworks elects to pursue such an action in the future.
"We expect to utilise this funding from our new partner to deliver more bandwidth infrastructure services to our growing in-place customers and new customers," said Brady Rafuse, Chief Executive Officer of euNetworks. "This is an exciting time for our business, and as ever, we are focused on delivering our targets for further scale."
18 April 2013 euNetworks' Amsterdam data centre becomes AMS-IX certified. Facility is one of four locations where AMS-IX houses its core and edge infrastructure. Named one of the two providers of Dark Fibre services, renewing existing Colocation and Dark Fibre service contracts with AMS-IX.
London, UNITED KINGDOM; Amsterdam THE NETHERLANDS - 18 April 2013 -euNetworks Group Limited (SGX: H23.SI), today announced its key Amsterdam data centre is AMS-IX certified. This status signifies that euNetworks' data centre in Amsterdam delivers a high standard of security and a reliable environment. Subsequently, it is one of the 4 locations that house AMS-IX's core infrastructure and one of 12 housing their edge infrastructure in the city. In addition, euNetworks is one of two Dark Fibre providers used by AMS-IX to connect all of their core and edge infrastructure. euNetworks has supported AMS-IX with its facilities based infrastructure services for over six years, with renewal of existing Colocation and Dark Fibre service contracts secured as part of this certification.
Today AMS-IX is the world's largest Internet exchange point in number of connected parties. This Internet exchange is where the networks of Internet Service Providers, telecom carriers, content providers, and web hosters meet to exchange Internet Protocol (IP) traffic with one another, with this commonly referred to as ‘peering'. Every member of AMS-IX can peer with any of the other connected parties.
"A reliable infrastructure is vital to AMS-IX, as we strive to serve our member's and customer's growing exchange needs," said Henk Steenman, Chief Technology Officer of AMS-IX. "We have been working with euNetworks for over six years and continue to benefit from their responsiveness, flexibility and most importantly, their infrastructure capabilities. They understand the needs of the exchange and the importance of high quality infrastructure to its efficient running."
"We are delighted to have been certified by AMS-IX and continue to support the exchange with our infrastructure," said Uwe Nickl, Chief Marketing Officer of euNetworks. "Today AMS-IX uses our Dark Fibre services to connect all data centres where their core and edge infrastructures are located, helping AMS-IX to offer the world's most advanced peering platform to its members and customers. AMS-IX uses our data centre as one of the locations to securely house their core network infrastructure and edge infrastructure. This also enables other euNetworks Colocation customers to connect to AMS-IX within the same building. We thank AMS-IX for their continued support of euNetworks and look forward to working with them, their members and our customers, enabling a connected world."
14 March 2013 Latest Tier 1 network provider to establish a Point of Presence at their LDeX1 data centre in North West London; euNetworks
London, UNITED KINGDOM 14 March 2013 London Data Exchange (LDeX), providers of carrier neutral London data centres and colocation hosting solutions today announced details of the latest Tier 1 network provider to establish a Point of Presence at their LDeX1 data centre in North West London; euNetworks.
euNetworks Group Limited (SGX: H23.SI), is a unique bandwidth infrastructure provider, owning and operating 13 fibre-based metropolitan networks across Europe, including London, connected with a high capacity intercity backbone covering 38 cities in 9 countries. The company offers a portfolio of metropolitan and long haul services including Colocation, Dark Fibre, Metro Wavelengths, Wavelengths, Ethernet, and Internet Connectivity. These directly serve their wholesale customers, such as carriers, mobile operators, regional service providers and integrators. They are also bundled into bandwidth solutions for enterprise customers, from online retailers, manufacturers and logistics companies to financial services and media agencies.
LDeX1 is an independent and privately owned 22,000sqft colocation facility based in North West London. The site provides colocation solutions ranging from quarter racks to full 20kW racks, private cages and dedicated data centre suites to clients from a number of sectors including Media, Finance and Technology.
LDeX's carrier neutral approach at the site enables euNetworks to provide tailored high capacity and low latency critical network solutions directly to clients hosting their equipment at LDeX1.
"We are delighted to be working with LDeX. From infrastructure to security, procurement procedures to operational processes, LDeX offer the quality demanded by business today," said Uwe Nickl, Chief Marketing Officer of euNetworks. "Connecting to LDeX1 enables us to quickly deliver high speed network services on our facilities based infrastructure to the companies who colocate in or connect to the facility, enabling them to benefit from bandwidth without limits."
"We are delighted to welcome euNetworks' high capacity low latency network into our LDeX1 data centre," said Rob Garbutt, Chief Executive Officer of London Data Exchange. "The nature of euNetworks' bandwidth compliments LDeX's customer base, offering high capacity and low latency connectivity to the media and financial communities within our facilities."
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 (SGX: H23.SI), 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."
26 February 2013 Multi-year contract delivering Fibre ring in London. Growing demand for euNetworks' service portfolio amongst the Media industry.
London, UNITED KINGDOM – 26 February 2013 euNetworks Group Limited (SGX: H23.SI), today announced a new multi-year agreement with global marketing implementation agency Hogarth Worldwide (part of WPP Group). euNetworks was selected to deliver a Dark Fibre ring in London, connecting all of Hogarth Worldwide's major points of presence (PoPs). This infrastructure was delivered to Hogarth in 4Q 2012 and is now live.
Hogarth is a marketing implementation agency that uses proprietary technology to deliver intelligent savings for global brands. By combining a series of new systems and technologies Hogarth's specific expertise in TV and audio post production, print and digital production, transcreation and high-end CGI, enables the production and delivery of national and international campaigns at a fraction of the historic cost, while enhancing quality.
"Effective and reliable technology systems underpin our business model," said Dino Ciminello, Group Service Infrastructure Director at Hogarth Worldwide. "The fibre delivered by euNetworks gives us the flexibility and control we need to deliver very high bandwidth services across our enterprise."
"We believe that every business should have access to bandwidth without limits," said Brady Rafuse, Chief Executive Officer of euNetworks. "We are delighted to be supporting Hogarth Worldwide with the development of their underlying infrastructure, enabling enhanced online production delivery by serving the growing bandwidth needs between their offices, to data centres and to clients. Our unique fibre based infrastructure delivers bandwidth solutions that serve the media segment well as convergence of technologies, systems, IT and devices continues."
21 February 2013 Selected for portfolio capability and service level commitment
London, UNITED KINGDOM; Frankfurt am Main, GERMANY – 21 February 2013 euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), today announced it has signed a multi-year agreement with Xantaro Deutschland GmbH to deliver Internet connectivity. Under the terms of this new agreement, euNetworks is supporting Xantaro's connectivity requirements between the two key cities of Frankfurt and Hamburg, with this service going live in January 2013.
Xantaro is an international Service Integrator for carriers and service providers, as well as for enterprises and institutions, whose core business relies on the network. With a comprehensive service portfolio, Xantaro supports its customers in designing, implementing, maintaining and developing high-performance networks innovatively and economically.
"Our line of business is one of the fastest moving today. Our business continues to develop and grow as our customers' service and platform requirements continue to evolve. This new connectivity solution is important to support that," said Peter Schulte, Managing Director of Xantaro Deutschland. "We selected euNetworks GmbH as our connectivity provider due to their network quality and service commitments."
"Xantaro has been a supplier to euNetworks for a number of years," said Uwe Nickl, Chief Marketing Officer of euNetworks. "This new agreement positions euNetworks as a service provider to Xantaro and we are delighted to be working with them in this capacity. Our unique fibre assets, Internet product and our service commitment place us well to be able to support Xantaro and similar style companies, as their business needs grow. We look forward to growing this relationship as we continue to work together."
6 February 2013 euNetworks delivers Dark Fibre and Internet Services in Frankfurt. Key network provider for uvensys as they develop their business.
London, UNITED KINGDOM; Frankfurt am Main, GERMANY - 6 February 2013 - euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), today announced it has signed new multi-year agreements with uvensys GmbH, delivering Dark Fibre and Internet Services in Frankfurt. These new services are key to uvensys' expansion plans underway, as they look to open a further data centre in Frankfurt.
uvensys is a managed services and hosting provider, delivering a modular approach to business networking and corporate infrastructure needs. Their product and service portfolio include uHosting- from virtualisation through to dedicated server architecture, uAccess- Internet based solutions tailored to customer needs, uNetwork- a corporate MPLS VPN based networking product, as well as services such as Monitoring, Consulting and bespoke solution development.
"We are in the process of expanding our footprint in the data centre market to support our portfolio, enabling us to offer more services to our growing business customer base," said Volker Lieder, Chief Executive Officer of uvensys. "It is important that our underlying network provider is established in the market and will be able to meet our needs as we continue to develop our business. euNetworks owns and operates a fibre based network in Frankfurt and was a natural choice for us to work with on this. We trust their network and technical expertise."
"uvensys is a small but rapidly growing business, with clients who need a high service level commitment from them," said Uwe Nickl, Chief Marketing Officer of euNetworks. "Dark fibre connections between their key locations is fundamental to being able to deliver that and we are delighted to be supporting uvensys as they expand. At euNetworks we believe that all businesses can benefit from bandwidth without limits. The best way to ensure you have the bandwidth to scale is through fibre connections between buildings. This is a product that we continue to see more demand for across our operating markets."
31 January 2013 Strategic partnership supporting Telehouse's network infrastructure demands from end customers
London, UNITED KINGDOM; Frankfurt am Main, GERMANY – 31 January 2013 euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), today announced it has signed a strategic partnership with Telehouse Deutschland GmbH covering the exclusive provision of fibre connectivity by euNetworks to support Telehouse's growing bandwidth needs. Under the terms of this new agreement, euNetworks has delivered Dark Fibre services to Telehouse.
Telehouse's Frankfurt facility is located 3 kilometres from central Frankfurt, and as one of the largest data-housing facilities in Germany, is the colocation facility of choice in the city. Telehouse Frankfurt is connected to Europe's second largest Internet exchange, the DE-CIX, with over 400 international and domestic Internet Service Providers (ISPs) and carriers present in the facility. It has also become an ideal colocation facility for fast-growing multinational corporations and SMEs who also have a growing demand for value added services from Telehouse. It is these services that Telehouse are looking to support with the scalable bandwidth that euNetworks' Dark Fibre services deliver.
In the city of Frankfurt, euNetworks owns and operates a densely fibred, mesh-based city network that today delivers scalable bandwidth services to enterprise and wholesale customers. With this infrastructure, euNetworks can support multiple applications, from data centre connectivity to enterprise office connectivity, to trading across its footprint.
"We are delighted that Telehouse Deutschland has selected euNetworks to deliver their underlying fibre and connectivity needs in support of their customers," said Uwe Nickl, Chief Marketing Officer of euNetworks. "We look forward to a long and growing relationship with Telehouse, and are excited for the opportunity ahead with this partnership in place."
"A reliable infrastructure provider is vital to Telehouse Deutschland as we strive to serve the needs of our customers," said, Dr. Béla Waldhause, Chief Executive Officer of Telehouse Deutschland GmbH. "euNetworks' expertise, flexibility, performance and the reliability of their network makes them a strong connectivity partner as we continue to grow our business."