Zayo reported $643.5 million of consolidated revenue for the first quarter of its fiscal 2018, including $515.8 million from the Communications Infrastructure segments and $127.7 million from the Allstream segment. Net income amounted to $23.2 million, including $11.5 million from the Communications Infrastructure segments and $11.7 million from the Allstream segment.
Some highlights:
- As of September 30, 2017, the Company had $291.2 million of cash and $442.2 million available under its revolving credit facility.
- Business at its Allstream unit continues to decline.
- Fiber Solutions, Colocation fundamentals are strong; Transport, and Enterprise Networks lagging.
- In Enterprise services, Ethernet is performing well, driven by connectivity between data centers and into cloud environments. Managed WAN is mixed, as legacy ELI and Allstream customers experiencing higher churn because of off-net & legacy MPLS.
- Zayo continues to evaluate a potential conversion to an REIT structure.
- The company is lowering its Dec17q EBITDA guidance.
