Zayo reported that its fiscal third quarter 2013 revenues rose $7.9 million, sequentially, to $251.4 million due to an increase in net installations and growth, mainly from its acquisitions of First Telecom Services and Litecast.
The service provider's Q3 2013 adjusted EBITDA was $146.1 million, up $8.8 million sequentially. It also narrowed its losses by $11.7 million, from $20 million in the previous quarter to just $8.3 million.
In addition to the acquisition-driven growth, Zayo reported that positive net installations during the quarter resulted in $4.9 million in additional monthly revenue. The increase in organic revenue was partially offset by total customer churn, which drove a $3.3 million reduction in monthly revenue.
Supporting its customer base is its growing set of on-net buildings. During the quarter, the service provider spent $95.7 million in capital, a figure that included the addition of 636 new buildings to the network. As of the end of the quarter, Zayo had 11,100 on-net buildings with additional buildings under construction.
However, overall revenue growth was offset by a $1.6 million reduction in other revenue that relates to construction services and early termination charges.
Leading Zayo's revenue mix were three units: Dark Fiber, Ethernet, and Wave. During the quarter, it reported $74.9 million in Dark Fiber revenues, while Ethernet and Wave revenues rose to $60.7 million and $33.8 million, respectively.
While trailing the other units, the IP, Mobile Infrastructure Group, and SONET segments reported revenues of $23 million, $17.6 million, and $32.5 million.
- see the earnings release
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