Zayo's FY Q4 2013 revenues rise to $258.2M on organic growth, Core NAP acquisition
Zayo reported that its Q4 revenues for its fiscal year ended on June 30 rose 8 percent sequentially to $258.2 million due to an increase in new net installations and its acquisition of colocation provider Core NAP.
The competitive provider's adjusted EBITDA declined 17 percent to $141.7 million sequentially because of a $10.2 million lease termination cost charge. Without that charge, adjusted EBITDA for the quarter would have been $151.9 million, representing $607.6 million on an annualized basis and 11 percent growth over the previous quarter on an annualized basis.
Total revenue and Adjusted EBITDA for FY 2013 increased by $606 million and $358.5 million, respectively, as compared to fiscal year 2012, a factor it attributes to its acquisition of AboveNet.
Organic growth related to selling services to its carrier and enterprise customer base and network expansion represented about $46 million of the revenue increase.
From an organic perspective, the service provider continues to expand its existing network facilities in various markets, including the Southeast and San Diego. In the Southeast it added 2,500 route miles, a move that extended the competitive carrier's long-haul connectivity into Richmond, Va., Raleigh, N.C., Tampa and Orlando, Fla., while in San Diego it added 5,000 fiber miles to its network.
During the three-month period that ended on June 30, Zayo's capital expenditures were $101.9 million, which included adding 1,514 route miles and 482 buildings to the network.
Acquisitions also continue to be a key part of Zayo's growth strategy.
By acquiring Core NAP in May, the service provider gained a 15,000 sq. ft. data center facility in northwest Austin, Texas, which offers carrier-neutral colocation services to 220 existing customers and four major carriers providing services.
In addition to Core NAP, Zayo entered into an agreement to acquire Minnesota-based dark fiber provider Access Communications for $40 million in August.
Upon closing that deal, the service provider will gain a 1,200-mile fiber network covering the greater Minneapolis-St. Paul metropolitan area, connecting more than 500 on-net buildings, including the area's major datacenters and carrier hotel facilities.
- see the earnings release
Zayo adds 2,500 fiber route miles to Southeast U.S. network
Zayo acquires Access Communications for $40M, ups Minneapolis-area fiber footprint
Zayo adds 5,000 fiber miles to San Diego fiber network