Zayo's Q2 earnings rise 14 percent to $274M on new installations, acquisition growth
Zayo reported that its fiscal quarter revenue grew 14 percent year-on-year to $273.6 million due to organic growth and acquisitions of other regional fiber-based providers throughout the past year.
Acquisition growth represented $3.6 million of its quarterly revenue increase. Likewise, adjusted EBITDA of $161.5 million increased 16 percent sequentially on an annualized basis.
One of the key elements of its growth strategy has been to increase its fiber route miles and on-net building reach.
During the quarter, the service provider spent $88.3 million, which included adding 408 route miles and 519 buildings to the network. As of the end of the quarter, Zayo had a total of 76,778 route miles and 14,196 on-net buildings.
Two markets where it drove growth were Miami and England.
In Miami, Zayo announced in November that it will build a high-count fiber ring to connect the DRT data center to the NAP of the Americas at 50 NE 9 St.
Targeting new key data center and financial companies, Zayo began building a 53-mile fiber network east of London and it won a contract to build a dark fiber backhaul network for U.K.-based SSE Telecoms.
Despite its gains, Zayo did report that its net loss increased by $2.1 million from the prior year due to higher taxes and stock option expenses.
- see the earnings release
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