direct/ euNetworks (DE) - EUNETWORKS ANNOUNCES FULL YEAR RESULTS FOR YEAR ENDING 31 DECEMBER 2006
Frankfurt, 27th February, 2007 -euNetworks AG, a subsidiary of the Global Voice Group, (GVG) (SGX: H23.SI)- owner and operator of one of Europe´s highest capacity fiber networks and provider of mission critical communication infrastructure and services - today announced total revenues of EUR24 million, and EBITDA profitability of EUR7 million for the year ended 31 December, 2006.
"2006 was a year of investment and consolidation in our core networking business in which we completed agreements with 47 new customers and signed EUR43 million in new business, a growth of over 250% over our previous year," said Noel Meaney, chief executive officer, euNetworks. "In the year we completed a major long-haul network acquisition, went live with our Amsterdam Datacenter, divested non-core businesses, and doubled sales and marketing resources. With the near completion of our next generation network design and build out, we are well positioned to sustain and accelerate our performance in 2007."
OPERATING AND FINANCIAL REVIEW OF FISCAL YEAR 2006
48% Year-Over-Year Growth In Revenues
EuNetworks leases and sells mission-critical fiber infrastructure and associated services to Europe´s largest corporate companies, carriers, and service providers. Total revenues for 2006 was EUR24 million, a 48% year-over-year increase over EUR16.3 million in 2005. Revenue is comprised of both long-term recurring leases and other income associated with infrastructure sales. Purchases/cost of sales grew 13% year-over-year to EUR4.3 million in 2006, reflecting higher sales-led/customer-led connections (further extending network footprint and "on-net" buildings), as well as the first full year of expenses related to euNetworks´ new Amsterdam datacenter.
Strong Growth in Deal Flow Drives EUR42.5 Million In New Contracts - up 250% Year-over-Year
In 2006, euNetworks completed agreements with 47 new customers (a 80% increase over 2005) and signed EUR42.5 million in new contracts (a 250% increase over 2005). In addition, the average length of contracts signed almost doubled from three years in 2005, to over five years from contracts signed in 2006. Given the long-term recurring model of euNetworks, these deals will principally impact revenues from fiscal 2007 onwards. A range of blue-chip organizations such as AMS-IX, Denit, Digiweb, Hosting365, Proserve, True and Xentech all publicly announced agreements with euNetworks in the year.
The full press release can be downloaded from the following link:
www.directnewsroom.de/servlets/LoadBinaryServlet/1815975/...
Contact:
Diane Hodnett
Commercial Director
EuNetworks AG
Tel: +353 1 469 1000
E-mail: diane.hodnett@eunetworks.com
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