November 28, 2012
Zayo Group Extends its Fiber Optic Network to More than 10,000 Buildings
By Sujata Garud
The Zayo Group (News - Alert) has now extended its fiber optic network to more than 10,000 buildings in 45 states in the United States and seven countries around the world. The network is the foundation for Zayo’s Bandwidth Infrastructure business, which has grown to USD 918 million in annualized revenue and USD 490 million in annualized adjusted EBITDA. The company has reached this milestone after six years of organic growth and acquisitions. Zayo’s network now covers 67,000 route miles with 4.7M miles of fiber in total.
Glenn Russo, executive VP at Zayo, said, “With over 10,000 connected buildings, Zayo’s network is one of the most expansive fiber networks in the U.S. and Europe. This reach allows us to deliver comprehensive solutions for our customers and provides a foundation to economically expand to many more locations over time.”
According to the company, customer-driven network expansion has played a vital role in the growth. This has included Fiber-to-the-Tower (FTT) deployments, dedicated financial services customer networks, regional education networks and connectivity to most of the country’s key data centers and interconnection points with other carriers. Since its inception, Zayo has invested USD 446 million in property, plant and equipment to extend its network and services for its customers.
The company has completed 22 acquisitions with its most recently announced acquisition of First Telecom Services expected to close by the end of 2012. In H2 2012, the company doubled its network with the acquisition of AboveNet. After that, the company expanded its reach with the August acquisition of FiberGate and October acquisition of USCarrier.
Recently, Zayo Group announced its results for the three months ended on September 30, 2012. Compared to FY 2012 Q4, Zayo Group generated quarterly revenue of USD 229.7 million; a USD 120.1 million sequential quarter increase largely attributed to the acquisition of AboveNet. Adjusted EBITDA for FY 2013 Q1 was USD 122.6 million, which was USD 65.1 million higher than the prior quarter. Loss from continuing operations was USD 53.4 million, USD 48.2 million higher than the USD 5.3 million net loss for the previous quarter.
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Edited by Brooke Neuman
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