Second Quarter 2011
• Total revenue of €14.6m, up 43% from 2Q 2010
• Gross profit of €10.7m, up 43% from 2Q 2010
• Gross Margin of 73.3%, down from 73.5% in 2Q 2010
• Adjusted EBITDA of €1.1m, improving from €(0.3)m in 2Q 2010
• Net loss of €(6.5)m, improving from €(14.4)m in 2Q 2010
• 20 new customers gained in the quarter
First Half 2011
• Total revenue of €25.1m, up 32% from 1H 2010
• Gross profit of €18.5m, up 33% from 1H 2010
• Gross Margin of 73.7%, up from 73.2% in 1H 2010
• Adjusted EBITDA of €1.5m, improving from €(3.5)m in 1H 2010
• Net loss of €(10.1)m, improving from €(22.8)m in 1H 2010
• 34 new customers gained in the half year
London, UNITED KINGDOM - 3 August 2011 - euNetworks Group Limited (SGX: H23.SI), announced strong second quarter results, with significant sales and revenue growth. In addition, the Group completed the acquisition of LambdaNet Deutschland Communications AG ("LambdaNet") on 31 May 2011. The results announced today include one month of LambdaNet financials.
Total revenues grew by 43% year on year, from €10.2m in 2Q 2010 to €14.6m in 2Q 2011 and were all recurring. Gross profit in the quarter increased by 43% to €10.7m, up from €7.5m in 2Q 2010. Gross margin declined slightly to 73.3%, largely as a result of LambdaNet, reflecting the enterprise nature of LambdaNet's services and their lack of metropolitan assets. Over time euNetworks is optimistic on an improvement in gross margin as LambdaNet services are brought on-net, leveraging euNetworks' network. Adjusted EBITDA(1) continued to improve and was €1.1m for the quarter. Excluding acquisition costs relating to LambdaNet, which were expensed in the period, underlying Adjusted EBITDA was €1.5m.
For the half year, total revenues grew by 32% from 1H 2010 to €25.1m. Gross profit for 1H 2011 increased by 33% to €18.5m and gross margin was slightly up, reaching 73.7%. Adjusted EBITDA was €1.5m in 1H 2011 compared to €(3.5)m in 1H 2010.
"It has been an exciting quarter for euNetworks," said Brady Rafuse, Chief Executive Officer of euNetworks. "We continue to deliver strong growth in our core business, with foundational work undertaken in 2010 driving us forward in this first half of 2011. Our on-net buildings, a key indicator of our performance, have grown from 365 at the beginning of 2011, to 489 at exit and we have many more in progress. We have also introduced inorganic growth to the business with the acquisition of LambdaNet and most recently TeraGate AG Storage Optical Network ("TeraGate"). Our results this quarter were ahead of management expectations and we have a strong funnel of opportunity moving into the third quarter. While we maintain focus on growing our core business, the scale and synergies offered from integrating LambdaNet and TeraGate into the euNetworks operating model creates an exciting opportunity for us in the quarters ahead."
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