Eurofiber revenues grow 3.6% in 2015, net profit drops to EUR 20.5 million

Friday 15 July 2016 | 10:12 CET | Background
Dutch business fibre network operator Eurofiber reported revenues of EUR 133 million for 2015, of which 89 percent came from the Netherlands. The revenues grew by 3.6 percent compared with 2014, according to its annual report, recently deposited at the Dutch Chamber of Commerce. The operating profit of the company increased by 17.6 percent 2015 to EUR 46.4 million, and the net profit amounted to EUR 20.5 million, down 24.5 percent compared with 2014.

Eurofiber’s EBITDA improved by 13.4 percent year-on-year to EUR 76.3 million, giving an EBITDA margin of 57 percent, five percentage points better than in 2014. Capex dropped from EUR 50.2 million to EUR 47.9 million, leading to a free cash flow of EUR 28.4 million, 67 percent higher than in 2014.

The annual report provides a division of the revenues per services. This shows that Eurofiber’s main revenue source (74%) is connectivity services (including dark fibre, Ethernet connections). Revenues from these services grew by 19 percent to EUR 98.4 million. The second largest revenue source was FttS (Fibre to the Site) services, which provide backhaul fibre connections to mobile antennas and base stations. These services were good for 22 percent of Eurofiber’s revenues in 2015, compared to 31 percent a year earlier. 

FttS revenue is classified as sale type lease contracts that are booked in one go as the connection is activated. This financial reporting method is a reason why the revenues decreased by 26 percent during 2015 to EUR 29.9 million. Eurofiber also reports revenues from co-location services at EUR 2.1 million during 2015, equal to 1.6 percent of all revenues. This leaves EUR 3.3 million as other revenues or 2.5 percent of all Eurofiber revenues in 2015.

During 2015, the Eurofiber Group completed two acquisitions for a total of EUR 32 million in cash. In June 2015, Eurofiber acquired Belgian fibre network B-Telecom from Syntigo for EUR 31.5 million and in December 2015 its Dutch subsidiary Unet acquired the Frisian internet exchange FR-IX for EUR 540,000. The B-Telecom acquisition was the main reason for Eurofiber’s foreign (non-Dutch) revenues to grow from EUR 2.6 million (2% of all revenues) to EUR 14.7 million (11% of all revenues). The Dutch revenues decreased by 6 percent to EUR 119 million (89% of all revenues) mainly due to the decrease in FttS revenues.

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