Free Research Report as Zayo Group’s Quarterly Revenue up 28.97% y-o-y

LONDON, UK / ACCESSWIRE / March 07, 2018 / Active-Investors.com has just released a free earnings report on Zayo Group Holdings, Inc. (NYSE: ZAYO) (“Zayo”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ZAYO. On February 07, 2018, Zayo reported financial results for the second quarter ending December 31, 2017. The Company reported significant improvement in its net revenues and operating income. Net income declined mainly due to one-time tax expense of the new Federal Tax Cut and Jobs Act. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Zayo Group Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=ZAYO

Earnings Highlights and Summary

Zayo’s total revenues for the second quarter of fiscal 2018 (Q2 FY18) reached $653.5 million, up 28.97% from $506.7 million in Q2 FY17. The reported total revenue number surpassed analysts’ consensus estimates of $650.8 million.

During Q2 FY18, Zayo’s total operating cost and expenses were $549.5 million, an increment of 32.09% y-o-y. The Company selling, general, and administrative (SG&A) expenses advanced 16.17% to $121.6 million in Q2 FY18 from $104.7 million in Q2 FY17. The Company’s operating income advanced 14.66% to $104 million in Q2 FY18 compared to $90.7 million in Q2 FY17.

Zayo generated a net income of $11.5 million in Q2 FY18, a decline of 41.92% from $19.8 million in Q2 FY17. Diluted earnings per share (DEPS) for the quarter under review also decreased 37.5% to $0.05 from $0.08 in the year earlier comparable quarter. This included increased income tax expense of $44.1 million due to the tax reform under the Tax Cut and Jobs Act of 2017, which was partially offset by a $28.5 million release of a valuation allowance on deferred tax assets for certain foreign subsidiaries.

Zayo’s adjusted EBITDA was $329.9 million for Q2 FY18, an increase of 25.25% from $263.4 million in Q2 FY17. However, adjusted EBITDA margin declined to 50.48% in the reported quarter from 51.98% in the year-ago same quarter.

Zayo Group Holdings’ Segment Details

During Q2 FY18, the Communications Infrastructure segment generated net revenues of $530 million, which was 81% of Zayo’s total revenues. This segment reported a net income of $10.6 million for Q2 FY18. This segment’s adjusted EBITDA for the reported quarter was $300.0 million and EBIDTA margin was 56.6%, mainly led by Fiber solutions and Colo sub-segments.

For Q2 FY18, the Allstream segment generated net revenues of $123.5 million, which was 19% of Zayo’s total revenues. This segment reported net income of $0.9 million for Q2 FY18. This segment’s adjusted EBITDA for the quarter under review was $29.9 million and EBITDA margin was 24.21%.

Cash Matters

Zayo had cash and cash equivalents of $280.8 million as on December 31, 2017, an increase of 27.23% from $220.7 million as on June 30, 2017. The Company had a long-term debt of $5.54 billion as on December 31, 2017, compared to $5.53 billion as on June 30, 2017.

For the six months ending December 31, 2017, Zayo’s cash flow from operating activities was $456.5 million, up 13.42% from $402.5 million in the same period of 2016.

Zayo spent $386.8 million on purchases of property and equipment during H1 FY18, 8.32% lower than $421.9 million in H1 FY17.

Zayo issued new long-term debt of $312.8 million in the six months ending December 31, 2017. The Company made principal repayments of $313.2 million on long-term debt and principal repayments of $4.0 million on capital lease obligations during H1 FY18.

Stock Performance Snapshot

March 06, 2018 – At Tuesday’s closing bell, Zayo Group Holdings’ stock marginally rose 0.03%, ending the trading session at $36.20.

Volume traded for the day: 1.62 million shares.

Stock performance in the last three-month – up 2.40%; previous six-month period – up 5.72%; and past twelve-month period – up 13.84%

After yesterday’s close, Zayo Group Holdings’ market cap was at $8.76 billion.

Price to Earnings (P/E) ratio was at 69.88.

The stock is part of the Technology sector, categorized under the Networking & Communication Devices industry. This sector was up 0.5% at the end of the session.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third-party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors

ReleaseID: 492079