Zayo Group (News - Alert), a provider of fiber bandwidth infrastructure solutions and carrier neutral colocation and interconnection services, recently announced the results of its fiscal year and fourth quarter, which ended on June 30, 2012. The company posted very positive figures with revenue and earnings before interest, tax, depreciation and amortization (EBITDA) up from the previous year.
Quarterly revenue and adjusted EBITDA experienced sequential growth this quarter, which the company has experienced since its inception. Overall, the growth experience in Q4 had a lot to do with Zayo's ongoing network installations, as well as the acquisition of Arialink, a provider of bandwidth infrastructure services in the Midwest, which took place in May.
Total revenue for fiscal year 2012 increased by $94.8 million compared to 2011, while EBITDA was up by $67.9 million. Again, Zayo points to its recent acquisitions as the reason for its growth this fiscal year, including the purchase of American Fiber Systems (News - Alert) Holdings Corporation in October 2010 as well as the acquisition of 360networks and Mercury Marquis Holdings in December 2011. Otherwise, Zayo cites organic growth for its increased earnings.
During the final quarter of its 2012 fiscal year, the company made net capital expenditures totaling $21.4 million, which is partially attributed to the addition of 121 route miles and 203 buildings to its network.
Obviously seeing its recent trend toward acquisitions as lucrative, Zayo recently acquired yet another company: FiberGate, a metro area provider of dark fiber services. Funded from available cash, the acquisition cost Zayo $117 million and was closed as of August 31. As a result, Zayo can now add 399 new route miles and 130,000 fiber miles in Washington, D.C., Northern Virginia, Baltimore and Maryland to its network.
The company also recently announced the expansion of products available through its Agent sales channel to now include colocation and interconnect services provided by zColo, its carrier neutral colocation and interconnect-focused business.
Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX. Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.
Edited by Brooke Neuman