Zayo reported that its fiscal year first-quarter revenue rose 32 percent sequentially on an annualized basis to $320.6 million due to acquisitions and internal organic growth.
At the same time, adjusted EBIDTA of $183.0 million increased 28 percent over the previous quarter on an annualized basis. However, operating loss increased $26.2 million sequentially, and net loss increased by $37.0 million from the previous quarter.
In terms of organic growth, the service provider added 387 route miles of fiber and 530 buildings to its network, driving up capex to $115.3 million.
The service provider continued to be aggressive on the acquisition front, purchasing a 96 percent stake in Paris-based Neo Telecoms for $78.1 million. By acquiring Neo, Zayo added over 300 route miles of owned Paris metro fiber and approximately 540 on-net buildings to its network. In addition, Zayo gains access to nine colocation centers across France, offering over 36,000 square feet of data center space.
Zayo is integrating the Paris and regional network throughout France into its existing European network connecting London, Frankfurt, Amsterdam and the U.S.
The service provider also acquired Colo Facilities Atlanta (AtlantaNAP), a data center and managed services provider in Atlanta, for $52.5 million. This acquisition added nearly 72,000 square feet of total data center space, including 42,000 square feet of conditioned colocation space.
Zayo's shares were listed at $23.39, down 19 cents or 0.81 percent, in Friday morning trading on the New York Stock Exchange.
- see the earnings release
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