Zayo Group, one of the most active consolidators in the fiber market, this week reported solid fiscal fourth-quarter earnings as its multiple acquisitions have congealed into higher sales and more tightly run operations.
The $5.6 million in net income for the three months ended June 30 compared to a loss of $4.3 million in the same quarter a year earlier. Gross revenue totaled $61.4 million, a 52-percent leap from the year-ago period.
Zayos frenetic M&A strategy is, in large part, to thank for the financial surge. And while executives wont commit to naming potential targets in their sights, its obvious the companys appetite for inorganic growth isnt satiated.
We constantly look at opportunities as they become available,” Matt Erickson, president of Zayo Fiber Solutions, told VON/xchange at this weeks Fall 2010 COMPTEL PLUS show in Dallas, where the PAETEC-Cavalier and Lightower-Lexent deals had just been announced. Zayos latest takeover was the purchase, for an undisclosed amount, of American Fiber Systems in June.
And with 15 buyouts since 2007 under its belt, Zayo stands out as a likely key participant in that ongoing consolidation. Thats because the demand for fiber-based wireless services such as backhaul will only keep rising. The activity bodes well for our industry,” Erickson said.
Zayo just started releasing in-depth earnings figures this year a move that could portend an initial public offering as the economy improves.
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January 15 2019 @ 19:53:17 UTC