Zayo reported that fiscal third-quarter revenue was $278 million, up 6 percent sequentially due to a mix of organic growth related to new customer installations and acquisition-related growth.
The company also reported that adjusted EBITDA rose 9 percent to $165 million on an annualized basis.
Since March 31, the company has entered into $1,557.6 million of gross new sales contracts, which will represent an additional $21.9 million in monthly revenue once installation on those contracts is accepted. During this period, the amount of gross installations accepted resulted in additional monthly revenue of $19.0 million.
A big focus during the quarter was network expansion. Capital expenditures were $90.9 million, which included adding 335 route miles of fiber and 294 buildings to the network.
On the acquisition front, Zayo struck a deal to acquire Neo Telecoms, a Paris-based bandwidth infrastructure company. When the deal closes, the company will acquire a 96 percent equity interest in Neo Telecoms and its subsidiaries.
The revenue increase related to organic growth was partially offset by total customer churn of $14.5 million in monthly revenue since March 31, 2013. Zayo's net loss increased $7.4 million sequentially and $25.2 million year-over-year from the third quarter of fiscal year 2013.
About 88 percent of churn processed was related to hard disconnects, while another 10 percent was related to negative price changes, and 2 percent was associated with network upgrades. Acquisition-related growth represented about $0.7 million of the sequential quarterly revenue increase.
- see the earnings release
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