Press releases

London, UNITED KINGDOM - 17 May 2013 - euNetworks Group Limited (SGX: H23.SI), a pan-European bandwidth infrastructure provider, announced it has built a diverse route from London to Basildon (NYSE Euronext), supporting a growing connectivity requirement in the market. In December 2012, euNetworks launched its leading ultra low latency fibre route linking Basildon to Frankfurt. Since that time, euNetworks has leveraged this fibre route to support the many customer requests for a diverse route linking London to Basildon, with this connectivity service now live and supporting customer's bandwidth requirements from 100Mbps Ethernet through 10Gbps Wavelengths.

euNetworks offers market leading latency performance from all major capital markets across Europe, enabling customers with direct and high bandwidth connectivity via the euTrade service portfolio.

At the core of euNetworks capability as a bandwidth infrastructure provider, is its 13 fibre based city networks owned and operated across Western Europe. euNetworks' London metropolitan network enables customers to connect from their office building, a key data centre or exchange, through to NYSE Euronext with either Ethernet or Wavelengths services. This new route combines euNetworks' city based bandwidth expertise with its long haul ultra low latency network platform, delivering more route options to this important market.

"Basildon is a critical trading location with growing importance to the financial community," said David Selby, Vice President of Product and Strategy at euNetworks. "Being able to offer a diverse route out to Basildon from central London combined with our leading long haul ultra low latency capability to Frankfurt offers our customers yet another compelling reason to choose euNetworks to deliver their connectivity needs. Diversity in this market is increasingly important as customers require both low latency and high availability to fulfil their network requirements."

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London, UNITED KINGDOM - 9 May 2013 - euNetworks Group Limited (SGX: H23.SI), today announced that it is proceeding with a 50-to-1 share consolidation following the proposal by the Company made on 2 April 2013 and approved by shareholders at an Extraordinary General Meeting held on 24 April 2013. The share consolidation will reduce the number of shares in issue from 22,568,636,177 to 451,372,723. The Book Closure Date for the share consolidation will be 30 May 2013, and the consolidation will be effective the following day.

"euNetworks is an infrastructure based telecoms business which has demonstrated consistent quarter-on-quarter adjusted EBITDA growth. Despite our healthy performance and relative company size, certain institutional investors are unable to participate in our long-term outlook," said Brady Rafuse, Chief Executive Officer of euNetworks. "We believe the volatility of our share price as a ‘penny stock' limits the potential for stability and growth in shareholder value. This share consolidation is one step available to us to improve our overall capital structure and we thank our shareholders for their support through this process."

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London, UNITED KINGDOM - 9 May 2013 - euNetworks Group Limited (SGX: H23.SI), a unique Western European provider of bandwidth infrastructure services, announced results for the three months ended 31 March 2013. The Group reported another strong quarter, with significant improvement in gross margin, Adjusted EBITDA1 and proxy cash flow.

Recurring revenue improved 8% year over year, to €24.8m in 1Q 2013. Adjusted EBITDA was €5.7m in 1Q 2013, improving 171% from 1Q 2012 and 14% from 4Q 2012.

Gross margin for the quarter was 72.4%, increasing from 66.5% in 1Q 2012 and 71.2% in 4Q 2012. Year on year and sequential gross margin improvement in 1Q 2013 reflected the Group's continued focus on high margin new sales. As with previous quarters, new sales continued to deliver gross margins of greater than 80% through the period.

"The Group's discretionary capital investment was lower than in 1Q 2012 at €3.6m, but we plan to increase capital expenditure over the course of the year, particularly to enable further connections to data centres," said Brady Rafuse, Chief Executive Officer of euNetworks. "Additionally, the secured debt funding announced on 8 May 2013, enables euNetworks to deliver more bandwidth infrastructure services to growing in-place and new customers."

"As I mentioned last quarter, Adjusted EBITDA growth and utilising discretionary capital efficiency, is the primary measure for value creation in our business. Steadily improving operating efficiency and the leverage of increasing customer demand will enable euNetworks to deliver real value creation over time. We remain focused on this through 2013."

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London, UNITED KINGDOM - 8 May 2013 - euNetworks Group Limited (SGX: H23.SI), today announced that it has entered into a term loan facilities agreement with Barclays Private Credit Partners Fund L.P.

Terms and conditions for the committed term loan facility including interest rate, total leverage incurrence test and delayed draw feature are favourable to market.

The term loan may be expanded to €45 million as organic or inorganic growth opportunities materialise. In addition, Barclays Private Credit Partners have reflected their commitment to euNetworks' business by retaining an option to participate in any equity fundraising if euNetworks elects to pursue such an action in the future.

"We expect to utilise this funding from our new partner to deliver more bandwidth infrastructure services to our growing in-place customers and new customers," said Brady Rafuse, Chief Executive Officer of euNetworks. "This is an exciting time for our business, and as ever, we are focused on delivering our targets for further scale."

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London, UNITED KINGDOM; Amsterdam THE NETHERLANDS - 18 April 2013 -euNetworks Group Limited (SGX: H23.SI), today announced its key Amsterdam data centre is AMS-IX certified. This status signifies that euNetworks' data centre in Amsterdam delivers a high standard of security and a reliable environment. Subsequently, it is one of the 4 locations that house AMS-IX's core infrastructure and one of 12 housing their edge infrastructure in the city. In addition, euNetworks is one of two Dark Fibre providers used by AMS-IX to connect all of their core and edge infrastructure. euNetworks has supported AMS-IX with its facilities based infrastructure services for over six years, with renewal of existing Colocation and Dark Fibre service contracts secured as part of this certification.

Today AMS-IX is the world's largest Internet exchange point in number of connected parties. This Internet exchange is where the networks of Internet Service Providers, telecom carriers, content providers, and web hosters meet to exchange Internet Protocol (IP) traffic with one another, with this commonly referred to as ‘peering'. Every member of AMS-IX can peer with any of the other connected parties.

"A reliable infrastructure is vital to AMS-IX, as we strive to serve our member's and customer's growing exchange needs," said Henk Steenman, Chief Technology Officer of AMS-IX. "We have been working with euNetworks for over six years and continue to benefit from their responsiveness, flexibility and most importantly, their infrastructure capabilities. They understand the needs of the exchange and the importance of high quality infrastructure to its efficient running."

"We are delighted to have been certified by AMS-IX and continue to support the exchange with our infrastructure," said Uwe Nickl, Chief Marketing Officer of euNetworks. "Today AMS-IX uses our Dark Fibre services to connect all data centres where their core and edge infrastructures are located, helping AMS-IX to offer the world's most advanced peering platform to its members and customers. AMS-IX uses our data centre as one of the locations to securely house their core network infrastructure and edge infrastructure. This also enables other euNetworks Colocation customers to connect to AMS-IX within the same building. We thank AMS-IX for their continued support of euNetworks and look forward to working with them, their members and our customers, enabling a connected world."

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London, UNITED KINGDOM- 14 March 2013- London Data Exchange (LDeX), providers of carrier neutral London data centres and colocation hosting solutions today announced details of the latest Tier 1 network provider to establish a Point of Presence at their LDeX1 data centre in North West London; euNetworks.

euNetworks Group Limited (SGX: H23.SI), is a unique bandwidth infrastructure provider, owning and operating 13 fibre-based metropolitan networks across Europe, including London, connected with a high capacity intercity backbone covering 38 cities in 9 countries. The company offers a portfolio of metropolitan and long haul services including Colocation, Dark Fibre, Metro Wavelengths, Wavelengths, Ethernet, and Internet Connectivity. These directly serve their wholesale customers, such as carriers, mobile operators, regional service providers and integrators. They are also bundled into bandwidth solutions for enterprise customers, from online retailers, manufacturers and logistics companies to financial services and media agencies.

LDeX1 is an independent and privately owned 22,000sqft colocation facility based in North West London. The site provides colocation solutions ranging from quarter racks to full 20kW racks, private cages and dedicated data centre suites to clients from a number of sectors including Media, Finance and Technology.

LDeX's carrier neutral approach at the site enables euNetworks to provide tailored high capacity and low latency critical network solutions directly to clients hosting their equipment at LDeX1.

"We are delighted to be working with LDeX. From infrastructure to security, procurement procedures to operational processes, LDeX offer the quality demanded by business today," said Uwe Nickl, Chief Marketing Officer of euNetworks. "Connecting to LDeX1 enables us to quickly deliver high speed network services on our facilities based infrastructure to the companies who colocate in or connect to the facility, enabling them to benefit from bandwidth without limits."

"We are delighted to welcome euNetworks' high capacity low latency network into our LDeX1 data centre," said Rob Garbutt, Chief Executive Officer of London Data Exchange. "The nature of euNetworks' bandwidth compliments LDeX's customer base, offering high capacity and low latency connectivity to the media and financial communities within our facilities."

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London, UNITED KINGDOM - 27 February 2013 - euNetworks Group Limited (SGX: H23.SI), a unique Western European provider of bandwidth infrastructure services, announced results for the three months ended, and full year ending 31 December 2012. The Group reported strong financial performance for the year with continued improvement in recurring revenue, Adjusted EBITDA1 and proxy cash flow.

Recurring revenue improved 10% year over year, to €24.5m in 4Q 2012. Adjusted EBITDA was €5.0m in 4Q 2012, improving materially from 4Q 2011 and 52% from 3Q 2012. Absolute capital spending was reduced and allocated increasingly toward customer sales throughout the year.

Gross margin for the full year was 68.0%, down from 69.0% in 2011, reflecting the impact of acquisitions completed in 2Q and 3Q 2011. Gross margin for the quarter was 71.2%, improving from 64.7% in 4Q 2011 and from 67.1% in 3Q 2012. Year on year and sequential gross margin improvement in 4Q 2012 reflected the Company's continued focus on high margin new sales. New sales delivered gross margins of greater than 80% throughout 2012.

"The Group maintained its growth and scaling momentum reported quarter over quarter throughout 2012," said Brady Rafuse, Chief Executive Officer of euNetworks. "As integration and rationalisation wound down in 1H 2012, customer bandwidth demand steadily increased. This enabled our discretionary capital investment to be shifted even more towards extending network reach for our customers. We saw growing opportunity with both our existing customer base and new customers and segments."

"Whilst our financial metrics continued to improve, churn remained higher than previously seen through 2012. We acknowledge churn is a component of our business which needs to be managed aggressively. Adjusted EBITDA growth, utilising discretionary capital efficiently, is the primary measure for value creation in our business. Steadily improving operating efficiency and leveraging increasing customer demand will enable euNetworks to deliver real value creation over time."

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London, UNITED KINGDOM - 26 February 2013 -euNetworks Group Limited (SGX: H23.SI), today announced a new multi-year agreement with global marketing implementation agency Hogarth Worldwide (part of WPP Group). euNetworks was selected to deliver a Dark Fibre ring in London, connecting all of Hogarth Worldwide's major points of presence (PoPs). This infrastructure was delivered to Hogarth in 4Q 2012 and is now live.

 

Hogarth is a marketing implementation agency that uses proprietary technology to deliver intelligent savings for global brands. By combining a series of new systems and technologies Hogarth's specific expertise in TV and audio post production, print and digital production, transcreation and high-end CGI, enables the production and delivery of national and international campaigns at a fraction of the historic cost, while enhancing quality.

 

"Effective and reliable technology systems underpin our business model," said Dino Ciminello, Group Service Infrastructure Director at Hogarth Worldwide. "The fibre delivered by euNetworks gives us the flexibility and control we need to deliver very high bandwidth services across our enterprise."

 

"We believe that every business should have access to bandwidth without limits," said Brady Rafuse, Chief Executive Officer of euNetworks. "We are delighted to be supporting Hogarth Worldwide with the development of their underlying infrastructure, enabling enhanced online production delivery by serving the growing bandwidth needs between their offices, to data centres and to clients. Our unique fibre based infrastructure delivers bandwidth solutions that serve the media segment well as convergence of technologies, systems, IT and devices continues."

 

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London, UNITED KINGDOM; Frankfurt am Main, GERMANY - 21 February 2013 - euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), today announced it has signed a multi-year agreement with Xantaro Deutschland GmbH to deliver Internet connectivity. Under the terms of this new agreement, euNetworks is supporting Xantaro's connectivity requirements between the two key cities of Frankfurt and Hamburg, with this service going live in January 2013.

Xantaro is an international Service Integrator for carriers and service providers, as well as for enterprises and institutions, whose core business relies on the network. With a comprehensive service portfolio, Xantaro supports its customers in designing, implementing, maintaining and developing high-performance networks innovatively and economically.

"Our line of business is one of the fastest moving today. Our business continues to develop and grow as our customers' service and platform requirements continue to evolve. This new connectivity solution is important to support that," said Peter Schulte, Managing Director of Xantaro Deutschland. "We selected euNetworks GmbH as our connectivity provider due to their network quality and service commitments."

"Xantaro has been a supplier to euNetworks for a number of years," said Uwe Nickl, Chief Marketing Officer of euNetworks. "This new agreement positions euNetworks as a service provider to Xantaro and we are delighted to be working with them in this capacity. Our unique fibre assets, Internet product and our service commitment place us well to be able to support Xantaro and similar style companies, as their business needs grow. We look forward to growing this relationship as we continue to work together."

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London, UNITED KINGDOM; Frankfurt am Main, GERMANY - 6 February 2013 - euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), today announced it has signed new multi-year agreements with uvensys GmbH, delivering Dark Fibre and Internet Services in Frankfurt. These new services are key to uvensys' expansion plans underway, as they look to open a further data centre in Frankfurt.

uvensys is a managed services and hosting provider, delivering a modular approach to business networking and corporate infrastructure needs. Their product and service portfolio include uHosting- from virtualisation through to dedicated server architecture, uAccess- Internet based solutions tailored to customer needs, uNetwork- a corporate MPLS VPN based networking product, as well as services such as Monitoring, Consulting and bespoke solution development.

"We are in the process of expanding our footprint in the data centre market to support our portfolio, enabling us to offer more services to our growing business customer base," said Volker Lieder, Chief Executive Officer of uvensys. "It is important that our underlying network provider is established in the market and will be able to meet our needs as we continue to develop our business. euNetworks owns and operates a fibre based network in Frankfurt and was a natural choice for us to work with on this. We trust their network and technical expertise."

"uvensys is a small but rapidly growing business, with clients who need a high service level commitment from them," said Uwe Nickl, Chief Marketing Officer of euNetworks. "Dark fibre connections between their key locations is fundamental to being able to deliver that and we are delighted to be supporting uvensys as they expand. At euNetworks we believe that all businesses can benefit from bandwidth without limits. The best way to ensure you have the bandwidth to scale is through fibre connections between buildings. This is a product that we continue to see more demand for across our operating markets."

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London, UNITED KINGDOM; Frankfurt am Main, GERMANY - 31 January 2013 - euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), today announced it has signed a strategic partnership with Telehouse Deutschland GmbH covering the exclusive provision of fibre connectivity by euNetworks to support Telehouse's growing bandwidth needs. Under the terms of this new agreement, euNetworks has delivered Dark Fibre services to Telehouse.

Telehouse's Frankfurt facility is located 3 kilometres from central Frankfurt, and as one of the largest data-housing facilities in Germany, is the colocation facility of choice in the city. Telehouse Frankfurt is connected to Europe's second largest Internet exchange, the DE-CIX, with over 400 international and domestic Internet Service Providers (ISPs) and carriers present in the facility. It has also become an ideal colocation facility for fast-growing multinational corporations and SMEs who also have a growing demand for value added services from Telehouse. It is these services that Telehouse are looking to support with the scalable bandwidth that euNetworks' Dark Fibre services deliver.

In the city of Frankfurt, euNetworks owns and operates a densely fibred, mesh-based city network that today delivers scalable bandwidth services to enterprise and wholesale customers. With this infrastructure, euNetworks can support multiple applications, from data centre connectivity to enterprise office connectivity, to trading across its footprint.

"We are delighted that Telehouse Deutschland has selected euNetworks to deliver their underlying fibre and connectivity needs in support of their customers," said Uwe Nickl, Chief Marketing Officer of euNetworks. "We look forward to a long and growing relationship with Telehouse, and are excited for the opportunity ahead with this partnership in place."

 

"A reliable infrastructure provider is vital to Telehouse Deutschland as we strive to serve the needs of our customers," said, Dr. Béla Waldhause, Chief Executive Officer of Telehouse Deutschland GmbH. "euNetworks' expertise, flexibility, performance and the reliability of their network makes them a strong connectivity partner as we continue to grow our business."

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London, UNITED KINGDOM - 19 December 2012 - euNetworks Group Limited (SGX: H23.SI), a pan-European bandwidth infrastructure provider, today announced it has connected up London's newest addition to the data centre market. Connectivity services from euNetworks will be available when Volta's data centre becomes operational early in 2013.

Today euNetworks serves the London market with scalable bandwidth connections. Companies range from the tech and digital businesses located in Tech City, to media companies, to Internet service providers and the financial services community who demand ultra-low latency connections.
Volta's new Great Sutton Street facility is set to become one of Central London's most advanced and resilient data centres. Based in immediate proximity to Tech City and London's Soho media district as well as the City's financial district, the site is ideally located to cater to companies operating in these sectors. This combined with Volta's new connectivity partnership with euNetworks, delivers a service offering tailored to meet the needs of these important and growing sectors.

"As a bandwidth infrastructure provider, connecting to data centres and other high bandwidth buildings in our operating cities is vital to being able to serve our customers and drive more value out of our unique city-based fibre assets," said David Selby, Vice President of Product and Strategy at euNetworks. "We're delighted to be working with Volta as they bring their new facility to market. We will be able to quickly deliver high speed bandwidth to the varying companies who will be attracted to colocate in the Great Sutton Street facility."

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London, UNITED KINGDOM - 17 December 2012 - euNetworks Group Limited (SGX: H23.SI), a pan-European bandwidth infrastructure provider, announced it has launched a new ultra low latency route, adding Basildon (NYSE Euronext) in the United Kingdom to its dedicated finance network. Delivering one of the shortest routes in the market today, euNetworks provides direct exchange-to-exchange connectivity linking Basildon to Frankfurt with a one way latency of less than 4.15 milliseconds.

euNetworks offers market leading latency performance from all major capital markets across Europe, enabling customers with direct and high bandwidth connectivity via the euTrade service portfolio.

"Basildon is a critical trading location with growing importance to the financial community," said David Selby, Vice President of Product and Strategy at euNetworks. "This new addition to our network was a natural next step in the development of our euTrade service portfolio and we are excited to be able to launch this leading route to our existing and new customers. Our clients continue to have access to a European wide ultra low latency networking solution and importantly, one that we continue to develop and optimise to support their growing and changing bandwidth needs. Today we deliver leading low latency solutions across our London metropolitan network, through to Slough and Basildon, Frankfurt, Stockholm, Zurich and Milan, directly into financial exchanges."

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Frankfurt, GERMANY - 20 November 2012 - euNetworks, in partnership with TelCap Ltd (owner of Capacity Media and Capacity Conferences) are proud to announce that the LambdaNet Forum 2013 will take place on 25 and 26 February 2013 in the Radisson Blu Hotel in Frankfurt.

The LambdaNet Forum has been running for 12 years and provides a valuable opportunity for executives from the German telecoms ecosystem to connect and do business with industry peers and to debate the latest industry trends. Professor Boecker from Boecker Ziemen Management Consultants, has been the event chair every year since its inception and will again be the chair in 2013.

"The LambdaNet Forum is a well-established platform where the latest trends in the telecommunications market are discussed," said Professor Boecker. "It provides a neutral framework to consider different perspectives and develop business strategies. Being able to address the most topical issues faced by this industry today, both through the agenda and the numerous networking opportunities, is invaluable in today's market." 

As a well-respected industry event with a loyal attendee base, euNetworks wanted to ensure the event continued and selected Capacity Media, a niche B2B events and publishing business in the wholesale telecommunications sector, to take over the running and organisation of the event.

"We understand the importance of the LambdaNet Forum to the industry and as I stated in February at the Forum, euNetworks is committed to ensuring the continued development of it in 2013 and years to come", said Uwe Nickl, Chief Marketing Officer of euNetworks. "I am delighted that Capacity Conferences are taking on the delivery of the Forum and excited for the opportunity this gives to the German and European telecommunications industry."

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London, UNITED KINGDOM - 19 November 2012 - euNetworks Group Limited (SGX: H23.SI), a pan-European bandwidth infrastructure provider, today announced it has been named an Accredited Connectivity Partner (ACP) by London Stock Exchange Group. Today London Stock Exchange Group operates a broad range of international equity, bond and derivatives markets. This partnership is an integral part of its new connectivity service, Customer Managed Connectivity (CMC), which allows customers direct access to its markets through ACPs.

As an ACP, euNetworks offers access to trading and market data from London Stock Exchange Group's core markets, including London's Main Market and the London Stock Exchange-owned multilateral trading facility, Turquoise. The addition of ACPs such as euNetworks to the CMC, means this community of members, non-members and independent software vendors have more flexibility when ordering connectivity services and market data access.

"We are pleased to welcome euNetworks as an Accredited Connectivity Partner," said Nigel Harold, Head of Business Development - Technology for London Stock Exchange Group. "We are confident that euNetworks' infrastructure and experience will benefit our Customer Managed Connectivity service, meeting the needs of clients who require connections via reliable, low latency networks."

"With our continued commitment to deliver an industry leading service experience to financial organisations, becoming an Accredited Connectivity Partner was a natural step in our relationship with the London Stock Exchange and how we serve this market," said David Selby, Vice President of Products and Strategy at euNetworks. "Our unique combination of deep fibre metropolitan footprint, pan European Ethernet network and euTrade ultra low latency services, provides London Stock Exchange customers with a broad range of solutions, from point-to-point fibre to ultra low latency connections to any-to-any networking. In addition, our approach to customer experience positions us well to support the needs of the Customer Managed Connectivity service going forward and we are excited by the opportunity to participate."

euNetworks can support multiple applications, from data centre connectivity to enterprise office connectivity, to trading across its footprint. With fibre based connections into key European exchanges, customers benefit from an end-to-end service to over 200 data centres and over 600 enterprise buildings across Europe.

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London, UNITED KINGDOM - 7 November 2012 - euNetworks Group Limited (SGX: H23.SI), announced results for the three months ended 30 September 2012. The Group reported a steady third quarter, with continued improvement in recurring revenue and Adjusted2 EBITDA.

For the third quarter, recurring revenue was €24.1m, up from €21.2m in 3Q 2011 and €23.2m in 2Q 2012. All revenue was recurring in the quarter. Total new sales order customer contract value was €16.8m for 3Q 2012, increasing 17% year on year.

Gross margin for the quarter was 67.1%, down from 68.1% in 3Q 2011 but in line with gross margin reported in 2Q 2012. The year on year gross margin decline reflected the impact of acquisitions completed in 2011, as previously reported. euNetworks expects gross margin to improve over time, with a strong focus on high margin new sales. In 3Q 2012 new sales had gross margins of ~87%, up from ~83% in 1Q 2012 and ~84% in 2Q 2012.

Churn for the business was higher for the year to date in 2012 than previously seen. This was in part due to some LambdaNet contracts reaching the end of their term, as euNetworks knew would be the case when the acquisition was closed. Additionally there was some churn related to contracts for SDH and IP VPN services, which are not a core focus for euNetworks going forward.

"While churn will always be a part of our business, overall we continued to see good momentum in our performance through the quarter," said Brady Rafuse, Chief Executive Officer of euNetworks. "Our growth in Adjusted EBITDA was very encouraging, with a sequential increase of 32% reflecting continued improvement as the costs of integration and rationalisation have wound down and the resulting business is operating more efficiently."

"Optimising our systems and processes to enable a lean production system remained a priority in the quarter and will be in the quarters to come," said Rafuse. "We also made some great developments in our network infrastructure for the benefit of our existing customers, and to increase our opportunity with new customers and segments as has been outlined further in our announcement today. I am encouraged with our progress and as ever, remain committed to driving further long term recurring growth in our business."

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London, UNITED KINGDOM; Frankfurt, GERMANY - 10 October 2012 - euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), today announced the completion of a network project with Deutsche Börse AG. euNetworks, along with a number of other preferred partners, was selected to deliver important elements of Deutsche Börse's underlying infrastructure.

Deutsche Börse's roll out strategy for this network project has focused on optimisation, increased bandwidth and the highest possible system stability. euNetworks has been supporting Deutsche Börse's bandwidth requirements for a number of years, delivering Dark Fibre, Ethernet and Internet services. Within this latest roll out project, euNetworks has provided Deutsche Börse with state of the art Ethernet services and the ever important network redundancy they require.

"We are in the process of expanding our high-speed network in Europe, laying the foundations for our company's future growth and that of our customers," said Matthias Kluber, Executive Vice President of Deutsche Börse. "With a strong service record and its competitive offering, euNetworks has been an appreciated partner for this expansion."

"We are delighted to be supporting Deutsche Börse with this important networking expansion," said Brady Rafuse, Chief Executive Officer of euNetworks. "euNetworks remains focused on our customers' needs, with both segment and technical experts working closely to support their businesses. We invested in our Ethernet platform this year to ensure we are best-in-class and can continue to deliver infrastructure that scales as bandwidth demands increase. This relationship is testament to our continued understanding and commitment to growth segments, such as financial services."

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Düsseldorf, Frankfurt, GERMANY - 6 September 2012 - MESH GmbH, an independent Internet Service Provider (ISP) for infrastructure, today announced that it has further enhanced its European footprint, opening a new Point of Presence (PoP) in Amsterdam in partnership with euNetworks Group Limited (SGX: H23.SI).

 

euNetworks has supported MESH's growing business with its metropolitan bandwidth infrastructure services for over three years, enabling high speed connection to MESH Enterprise Grade IaaS platforms. Today's announcement delivers MESH with its third cloud ready PoP in the Netherlands, located within euNetworks' data centre in Amsterdam. euNetworks is also delivering further bandwidth services, enabling MESH to expand its backbone, and hence delivery of high quality Internet services such as managed Infrastructure as a Service (IaaS), Colocation and Internet Protocol (IP) to companies.

 

MESH offers an intelligent enterprise grade infrastructure cloud platform and neutral colocation to enterprises and SMEs. While founded in the German market and headquartered in Düsseldorf, more recently MESH has expanded its capability in Europe, offering its services and platforms from 27 PoPs across Europe. The MESH backbone in Amsterdam offers diverse connectivity to AMS-IX and multiple Tier 1 carriers. This in-turn delivers its customers with high quality and more secure Tier 1 upstream capabilities. Their direct connection expedites Internet access and minimises latencies, particularly for enterprise grade IaaS.

 

With solutions from a single rack to a full suite, euNetworks' Colocation is an optimal data centre solution for Carriers, Cloud operators and Enterprises wanting to host equipment in secure, standardised, and managed premises. This capability combined with euNetworks' fibre based metropolitan city network such as that in Amsterdam, and its long haul fibre network between cities, offers partners such as MESH with the scalable infrastructure they require for business growth.

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London, UNITED KINGDOM - 7 August 2012 - euNetworks Group Limited (SGX: H23.SI), announced results for the three months ended 30 June 2012 and the first half of 2012. The Group reported improving results overall, with continued year on year recurring revenue growth and strengthening Adjusted1 EBITDA. Sequential revenue growth was impacted by churn in the quarter, but the Group continued to deliver a strong sales performance to drive recurring revenue growth in future quarters.

For the second quarter, recurring revenue was €23.2m, up from €14.6m in 2Q 2011 and €23.0m in 1Q 2012. All revenue was recurring in the quarter and the Group continued to benefit from the addition of revenue following 2011 acquisitions, albeit with lower gross margins. Following the Group's strongest ever sales quarter in 1Q 2012, the value of total new sales order contracts declined slightly, from €23.2m to €21.1m for 2Q 2012. This was a significant increase year on year however, up 73% from 2Q 2011.

Gross profit in the quarter improved by 59%, from €10.7m in 2Q 2011 to €15.6m in 2Q 2012. Gross margin for the quarter was 67.1%, down from 73.3% in 2Q 2011, but improving from 66.5% in 1Q 2012. The decline in gross margin year on year largely reflected acquisitions completed in 2011. As previously stated, both acquired businesses were enterprise in nature, historically operating at lower gross margins. euNetworks expects gross margin to improve over time, with a strong focus on high margin new sales. In 2Q 2012 new sales had gross margins of 84%, up from ~80% in 4Q 2011 and ~83% in 1Q 2012.

Adjusted EBITDA was €2.5m in the quarter, up from €1.1m in 2Q 2011.

For the half year, total revenue grew by 84% from 1H 2011 to €46.2m. Gross profit for 1H 2012 increased by 67% to €30.9m and gross margin was slightly lower, at 66.8% for reasons detailed above. Adjusted EBITDA was €4.5m, improving from €1.5m in 1H 2011.

"Churn has been higher in 2012 than previously seen," said Brady Rafuse, Chief Executive Officer of euNetworks. "This is in part due to some LambdaNet contracts reaching the end of their term, as we knew would be the case when we acquired the business. This also reflects larger industry trends that are not limited to euNetworks - such as wholesale customers losing their end customers, and changing market strategies impacting for example, euTrade. We continue to believe that bandwidth demands are increasing and that high bandwidth services can provide a total cost benefit to many IT departments. The growth in distributed data such as cloud computing, and the mobility of data (with the ever-increasing ‘always-on' connectivity trends we see today), are key drivers of bandwidth usage. Fibre based services such as those offered by euNetworks, are the best way to serve such bandwidth demand. Our view is that this increased demand will serve to offset our current churn performance."

"We remain focused on optimising our systems and processes, enabling a lean production system and delivering a high standard of service to our customers to meet their bandwidth requirements both today and into the future," said Rafuse. "There remains good momentum in our business as we head into 2H 2012 and our sales performance remains strong. We will be closely managing our key fundamentals and costs in the coming quarters, and remain focused on driving up long term recurring revenue."

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London, UNITED KINGDOM; Dublin, IRELAND - 16 July 2012 - euNetworks Group Limited (SGX: H23.SI), today announced that it has deployed an 8.8 Tbps capable fibre based network from London to Dublin. Live and carrying customer services today, this completes the meshing of euNetworks' 13 operational fibre based city networks into a single optical domain. euNetworks are now able to deliver their complete service portfolio from Dublin through to London, Frankfurt and across Europe.

While the region continues to experience macroeconomic pressures, the demand for bandwidth continues to grow. Multinational technology companies have committed to further investment in their data centre and network infrastructure in and around Dublin over the last 12 months, with robust and diverse connections both in the city and across Europe evermore important as they continue to scale and bandwidth usage increases. euNetworks has developed an end-to-end fully redundant and owned network. Connecting Dublin into a national network across the United Kingdom including Manchester, Birmingham and Bristol and onwards to London, this network has been designed with the ability to provide optimal paths and diverse routing. euNetworks also utilises the next generation of Dense Wave Division Multiplexing (DWDM) platform in the network, enabling 10G, 40G and 100G capability day one.

"We are delighted to be able to improve our capability and connection to the Dublin market," said Brady Rafuse, Chief Executive Officer of euNetworks. "As a bandwidth infrastructure provider, our fibre assets in the metro are at the core of our strategy and business model. For a truly seamless and scalable experience for our customers, we need to link all our operating metropolitan networks with fibre based long haul connections. With this new link we complete that, and can now offer our customers a truly seamless service across cities, countries and Western Europe."

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London, UNITED KINGDOM - 16 May 2012 - euNetworks Group Limited (SGX: H23.SI), today announced an upgrade to its European long haul transport platform, delivering a 100 Gigabit (G) capable network to market. euNetworks has invested in this next generation of network due to customer demand, both for greater capacity and 100G circuits. The Company has selected Ciena Corporation (NASDAQ: CIEN) as its equipment supplier and deployed Ciena's 6500 Packet-Optical Platform with WaveLogic^TM coherent optical processors. This platform enables a simple upgrade to 100G transmission and beyond without any network infrastructure changes.

Today euNetworks' long haul network covers 37 cities in 9 countries, with fibre based metropolitan networks operating in 13 of these cities. The new 100G capability is available between the key cities of Frankfurt, London, Amsterdam and Paris, and also between Dusseldorf, Hamburg, Dublin, and Manchester. The power of euNetworks' dual gateways in major cities, combined with their mesh based metropolitan fibre networks means more data centres and customer sites are within 10km of a gateway (mitigating some customer 100GbE reach issues).

"We have been working closely with Ciena to bring the 100G capability to market," said David Tomalin, Chief Technology Officer of euNetworks. "With Ciena's coherent technology, we are delivering the new standard in high capacity services to our wholesale carrier and high bandwidth consuming enterprise customers. We deeply believe in providing customers the bandwidth flexibility they need as they scale their businesses, simplifying customer connections by removing the need to implement link aggregation or complex load balancing in their networks."

"The growth potential of our combined long haul and metropolitan fibre networks are crucial to our long term bandwidth infrastructure strategy," said Brady Rafuse, Chief Executive Officer of euNetworks. "Over the last year we have deployed our optical network with Ciena. This development future proofs our investment, ensuring we have the flexibility in our long haul network that our customers demand. Ciena has demonstrated their commitment to work with us as we continue to grow our business, serving the ever-growing bandwidth requirements we see before us. I am excited for the opportunity this brings."

Peter Newcombe, Vice President of Sales, Northern and Eastern Europe at Ciena: "euNetworks' customers in the traditional carrier segment, as well as financial services, mobile and media segments depend on highly reliable and scalable connectivity services and rely on euNetworks for a state-of-the-art network infrastructure that supports their ambitions. Ciena's coherent technology enables euNetworks to meet the growing capacity needs of its customers in a flexible, reliable and cost-efficient manner, adding 100G wavelengths alongside existing in-service 40G channels. We look forward to an on-going relationship with euNetworks, a dynamic and innovative bandwidth infrastructure provider."

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London, UNITED KINGDOM - 11 May 2012 - euNetworks Group Limited (SGX: H23.SI), announced results for the three months ended 31 March 2012. The Group reported a favourable quarter overall, with continued recurring revenue growth and a strong quarter of sales performance. The Group also benefitted from the addition of revenues following 2011 acquisitions, albeit with lower gross margin.

In summary, for the first quarter, recurring revenues were €23.0m, up from €10.5m in 1Q 2011 and €22.3m in 4Q 2011. All revenues were recurring in the quarter. Following a strong sales year through 2011, the value of total new sales order contracts grew significantly in 1Q 2012, reaching €23.2m, up from €12.8m in 1Q 2011 and €15.0m in 4Q 2011. With growth of 81% year on year and 55% sequentially, this was the strongest ever sales quarter for euNetworks.

Gross profit in the quarter increased by 96%, from €7.8m in 1Q 2011 to €15.3m in 1Q 2012. Gross margin for the quarter was 66.5%, down from 74.3% in 1Q 2011 but improving sequentially. The decline in gross margin year on year largely reflected acquisitions completed in 2011. As stated in previous quarters, both acquired businesses were enterprise in nature, and with a lack of their own metropolitan networks, historically operated at lower gross margins. euNetworks expects gross margin to improve over time, through a combination of integration synergies and high margin new sales. On average, new sales in 1Q 2012 had gross margins of ~83%, up from ~80% in 4Q 2011.

Adjusted EBITDA was €2.1m in the quarter, up from €0.4m in 1Q 2011 and €0.1m in 4Q 2011. There were a number of one-off costs relating to systems and process improvements in the quarter. These were associated with integration and continuing to build the foundations for growth. Excluding these one-off items, underlying adjusted EBITDA remained in line with that for 4Q 2011.

"The momentum we saw in our business in 4Q 2011 has continued through the 1Q 2012," said Brady Rafuse, Chief Executive Officer of euNetworks. "Integration programmes and synergies delivered from the acquisitions made last year, continue to drive further value into our business. We remain focused on selling our core assets, and it is these assets coupled with added capabilities in our Ethernet and Internet products that have delivered an exceptional sales quarter for euNetworks. We exited 2011 with a strong sales funnel and have converted that to strong sales performance this quarter. Bandwidth is a key enabler of our customers' growth plans, and our business plan and assets are aligned to this."

"As we move into 2Q 2012, we remain focused on delivering our business plan," said Rafuse. "Continued growth in long term recurring revenues is vital to being able to service the cost base this business requires to reach scale. At the same time, we remain focused on managing our costs appropriately."

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London, UNITED KINGDOM - 28 February 2012 - euNetworks Group Limited (SGX: H23.SI), announced solid fourth quarter and full year results, with continued growth of the business. Following the successful completion of two acquisitions in Germany and a rights offering, euNetworks is well positioned to take advantage of further opportunities.

The fourth quarter was an important period for integration activities as well as network developments and building connections, supporting growth into 2012. Results announced today for the quarter ended 31 December 2011, include a full quarter of LambdaNet Communications Deutschland GmbH ("LambdaNet") and TeraGate GmbH ("TeraGate") financials. Going forward, all reporting will be consolidated to euNetworks.

For the fourth quarter, total revenues grew by 74% year on year, from €13.7m in 4Q 2010 to €23.8m in 4Q 2011. Recurring revenues were €22.3m, up 112% from 4Q 2010. The non-recurring revenues in the quarter reflected the sale of non-core network assets. Overall, network revenues continued to grow, increasing by 83% from 4Q 2010 to €19.0m. Recurring network revenues excluding LambdaNet and TeraGate were up 22% compared to 4Q 2010 and up 8% from 3Q 2011. Gross profit in the quarter increased by 60%, from €9.6m in 4Q 2010 to €15.4m in 4Q 2011. Gross margin declined to 64.7%, down from 70.1% in 4Q 2010, which largely reflected the addition of LambdaNet and TeraGate to the Group. euNetworks is working to improve gross margin through a combination of integration synergies and high margin new sales. On average, new sales across the combined businesses have gross margin of ~80%. Adjusted EBITDA1 was €0.1m, down from €1.8m in 4Q 2010 following €2.6m of one-off restructuring and integration costs from acquisitions. Excluding these one-off items, underlying Adjusted EBITDA was €2.7m in the quarter.

For the full year, total revenues for the Group grew 65%, from €43.8m in 2010 to €72.1m in 2011. Recurring revenues for the year were €68.6m, up 75% from 2010. Network revenues grew by 80% to €54.6m, while recurring network revenues excluding LambdaNet and TeraGate grew 26% to €31.9m in 2011. Gross profit for the year increased by 58% to €49.7m. Gross margin was 69%, down from 72% in 2010. Adjusted EBITDA in 2011 was €5.9m, a significant improvement from €(0.9)m in 2010.

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London, UNITED KINGDOM - 21 December 2011 - euNetworks Group Limited (SGX: H23.SI), today announced the implementation of a new management structure, ensuring close alignment of key functions as the business scales further. In association with that new structure, the Company also announced two appointments to the Board of Directors, effective 1 January 2012.

John Scarano has been appointed Vice Chairman to the euNetworks Board of Directors and Executive Vice President of the Group, responsible for Finance, Operations, IT and Corporate Development. Prior to this appointment, Mr. Scarano served as Strategic and Corporate Development Advisor to euNetworks. John Franklin, Chief Operating Officer of euNetworks, reports directly to John Scarano, as do existing Finance leads and the Group Finance Director, Justin Bohm.

"euNetworks is a rapidly scaling European bandwidth infrastructure provider, driving value from core assets and investing to deliver further growth," said Brady Rafuse, Chief Executive Officer of euNetworks. "Close alignment and interaction between key functions within the business is vital to effectively support the demand we see from our customers, particularly as we move forward with the next phase of our development."
"With that in mind, we have combined our Finance and Operations teams into one core function, reporting to John Scarano," said Rafuse. "John joined the euNetworks management team earlier this year and was instrumental in acquisition and fund raising activity. He brings with him a wealth of commercial leadership as well as corporate, strategic, financial and operating experience. This new structure provides euNetworks with a service engine, managing our costs and capital deployment through to service delivery, billing and collections within one unit. It is a structure that enables euNetworks to grow, scale and continue to deliver a great experience to our customers."

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London, UNITED KINGDOM - 30 November 2011 - euNetworks Group Limited (SGX: H23.SI), today announced the departure of James Thomas, effective from 31 December 2011.

"Since joining euNetworks in September 2010 I have had the pleasure of working with a high performing, motivated and talented team," said James Thomas. "Much has been achieved during my time with the Company, with establishment of an integrated finance function, delivery of strong financial performance including consecutive positive Adjusted EBITDA for five quarters, the closing of two significant acquisitions, the raising of shareholder loans for interim funding and the successful completion of the recent rights issue. With a strengthened balance sheet, the business is entering a new phase of transformation so now is the right time for me to move on to other opportunities and I wish the team great success for the future."

"James has been a great asset to the business over the last year, building the finance function and supporting key corporate activity to develop and strengthen the business," said Brady Rafuse, Chief Executive Officer of euNetworks. "James has developed a finance function that will continue to develop and support our needs as we move into 2012. We wish him every success in his future role."

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London, UNITED KINGDOM - 11 November 2011 - euNetworks Group Limited (SGX: H23.SI), announced strong third quarter results, with a further acquisition, a successful rights offering and continued sustained growth of the business.

Following the acquisition of LambdaNet Deutschland Communications AG ("LambdaNet") in 2Q 2011, euNetworks completed the acquisition of TeraGate AG Storage Optical Network ("TeraGate") on 29 July 2011. The results announced today include a full quarter of LambdaNet financials and two months of TeraGate financials.

In connection with the LambdaNet acquisition in May 2011, the Group announced the intention to undertake a rights issue. That was completed on 6 September 2011, raising more than €72m. The proceeds have repaid shareholder loans and the accumulated interest associated with funding recent acquisitions. The balance will support customer oriented capital expenditure, working capital and fund further growth opportunities.

euNetworks delivered significant growth in the quarter, both excluding and including the financials of the two acquired companies. Total revenues grew by 117% year on year, from €11.1m in 3Q 2010 to €24.1m in 3Q 2011. Recurring revenues were €21.2m, up 114% from 3Q 2010. Network revenues continued to grow, up 146% to €19.2m in 3Q 2011. Excluding LambdaNet and TeraGate, network revenues grew 38% year on year and by 27% from 2Q 2011. Gross profit in the quarter increased by 98% to €15.8m, up from €8.0m in 3Q 2010. Gross margin declined to 65.6%, largely reflecting the addition of LambdaNet and TeraGate to the Group. As euNetworks continues to integrate these businesses, leveraging euNetworks' network, the Group anticipates improvement in gross margin. Adjusted EBITDA1 was €4.3m for the quarter, indicating further improvement as the business scaled. Excluding acquisition costs of €0.2m relating to TeraGate and €0.3m of one-off restructuring costs, which were expensed in the period, underlying Adjusted EBITDA was €4.8m.

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London, UNITED KINGDOM - 18 October 2011 - euNetworks Group Limited (SGX: H23.SI), has announced that it has completed a rights issue raising more than €72m (S$126m1) in the process. Valid acceptances and excess applications for a total of 8,494,291,524 rights shares were received, representing 98.2% of the available issuance. The proceeds have repaid the shareholder loans raised to fund the recent acquisitions. The balance will support customer oriented capital expenditures, working capital and fund further growth opportunities.

In May 2011, the Company announced and completed the acquisition of LambdaNet Communications Deutschland AG. In connection with the acquisition, euNetworks announced the intention to undertake a renounceable non-underwritten rights issue of new ordinary shares. euNetworks' substantial shareholders provided loans to cover the acquisition price pending completion of the rights issue. These loans also covered the acquisition of TeraGate AG Storage Optical Network in July 2011, as well as organic growth from normal operations.

"Following the completion of this rights issue, our business has a strengthened balance sheet, supporting our organic plans," said Brady Rafuse, Chief Executive Officer of euNetworks. "Maintaining a high performing networking and service delivery experience for our customers remains our first priority. Funding customer projects to drive organic growth is a close second. Remaining well positioned to make acquisitions opportunistically is third."

"In an economic environment that continues to challenge across countries and industries, I am very encouraged by the results we are delivering month-on-month and our position today," said Rafuse. "Our business depth and scale continues to develop, further enabling euNetworks to serve a widening array of customers and segments whose bandwidth requirements are only increasing. Mobile, Wholesale, Finance, and Enterprise sectors are among the highest growth opportunities."

Following rights issue completion, euNetworks' top shareholders include a range of sophisticated institutional and individual investors.

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London, UNITED KINGDOM - 17 October 2011 - euNetworks Group Limited (SGX: H23.SI), today announced the appointment of a new Director to the Board. This appointment is effective 17 October, 2011.

Duncan Lewis joins as an Independent, Non-Executive Director and will also take up the position of Chairman of the Nominating Committee for euNetworks. He has worked in the telecommunications and media industry for more than 25 years, holding Chief Executive, Managing Director and Chairman positions. Most recently Mr. Lewis was Chief Executive Officer of Vislink plc, stepping down from this position in March 2011. He has held similar positions at companies such as GTS Inc, Equant, Granada Media Group and Mercury Communications. His previous Director appointments include Chairman of Euphony Holdings, Mobix Interactive, MessageLabs and Sinotel Limited. He was also a Non-Executive Director of Viridian plc from 2002 to 2006 and an Independent Director of Completel from 2002 to 2008. Between 2002 and 2008, he served as an advisor to The Carlyle Group. Today Mr. Lewis is an Independent Director of Spirent Communications plc, and is a member of their Remuneration Committee.

"We are delighted to welcome Duncan to the euNetworks Board," said Brady Rafuse, Chief Executive Officer of euNetworks. "Duncan brings with him a wealth of industry experience and is a strong addition to the team as we continue to grow our business. His extensive Board and management experience is valuable to our continued development in Europe."

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London, UNITED KINGDOM - 3 August 2011 - euNetworks Group Limited (SGX: H23.SI), announced strong second quarter results, with significant sales and revenue growth. In addition, the Group completed the acquisition of LambdaNet Deutschland Communications AG ("LambdaNet") on 31 May 2011. The results announced today include one month of LambdaNet financials.

Total revenues grew by 43% year on year, from €10.2m in 2Q 2010 to €14.6m in 2Q 2011 and were all recurring. Gross profit in the quarter increased by 43% to €10.7m, up from €7.5m in 2Q 2010. Gross margin declined slightly to 73.3%, largely as a result of LambdaNet, reflecting the enterprise nature of LambdaNet's services and their lack of metropolitan assets. Over time euNetworks is optimistic on an improvement in gross margin as LambdaNet services are brought on-net, leveraging euNetworks' network. Adjusted EBITDA(1) continued to improve and was €1.1m for the quarter. Excluding acquisition costs relating to LambdaNet, which were expensed in the period, underlying Adjusted EBITDA was €1.5m.

For the half year, total revenues grew by 32% from 1H 2010 to €25.1m. Gross profit for 1H 2011 increased by 33% to €18.5m and gross margin was slightly up, reaching 73.7%. Adjusted EBITDA was €1.5m in 1H 2011 compared to €(3.5)m in 1H 2010.

"It has been an exciting quarter for euNetworks," said Brady Rafuse, Chief Executive Officer of euNetworks. "We continue to deliver strong growth in our core business, with foundational work undertaken in 2010 driving us forward in this first half of 2011. Our on-net buildings, a key indicator of our performance, have grown from 365 at the beginning of 2011, to 489 at exit and we have many more in progress. We have also introduced inorganic growth to the business with the acquisition of LambdaNet and most recently TeraGate AG Storage Optical Network ("TeraGate"). Our results this quarter were ahead of management expectations and we have a strong funnel of opportunity moving into the third quarter. While we maintain focus on growing our core business, the scale and synergies offered from integrating LambdaNet and TeraGate into the euNetworks operating model creates an exciting opportunity for us in the quarters ahead."

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London, UNITED KINGDOM - 1 August 2011 - euNetworks Group Limited (SGX: H23.SI), announced it has optimised the important London to Frankfurt low latency route on its dedicated finance network. This optimisation ensures euNetworks continues to deliver leading latency to the trading community, supporting their need for ever improving trading speed. euNetworks' direct exchange-to-exchange connectivity, linking key Finance Exchanges and Multilateral Trading Facilities (MTFs) in London to Frankfurt, is now done with a lowest one way latency of 4.29 milliseconds. Additionally, following optimisation from Slough, west of London, to Frankfurt, one way latency on this route is now 4.56 milliseconds.

euNetworks offers market leading latency performance from all major capital markets across Europe, enabling greater access to its euTrade service portfolio.

"We are committed to delivering the leading low latency solutions in the market to our customers," said David Selby, Vice President, Product and Strategy at euNetworks. "We continue to invest and optimise our routes to ensure we deliver the network performance that our customers need to maximise their business potential. London to Frankfurt is a key route for the financial community and our optimisation positions euNetworks as the connectivity partner of choice."

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London, UNITED KINGDOM - 29 July 2011 - euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), announced today that it has executed and completed a definitive agreement to acquire German based TeraGate AG Storage Optical Network ("TeraGate"), a company of DB Industrial Holdings Beteiligungs GmbH & Co. KG (a subsidiary of Deutsche Bank AG), and of EGORA Holding GmbH. The acquisition is a natural addition to the Group following the LambdaNet acquisition, with an enterprise customer base predominantly served in the German market. The acquisition closed today.

 

TeraGate is a leading service provider for next generation Corporate WAN in Germany with a high-end customer base and a market leading value proposition. Offering both national and international solutions to medium and large enterprises, TeraGate's product portfolio is based on intelligent Ethernet and efficient data centre and cloud services. TeraGate operates in Germany, headquartered in Munich, with technical headquarters in Frankfurt.

 

"The acquisition of TeraGate was a natural next step for us following the LambdaNet acquisition as we continue to develop our German business," said Brady Rafuse, Chief Executive Officer of euNetworks. "TeraGate has a great customer base, who predominantly purchase multiple services across 7 of the existing euNetworks metropolitan markets in Germany. Leveraging euNetworks' legacy metropolitan footprint, we expect to be able to bring over 50 buildings on-net, eliminating network expense. Additionally, LambdaNet's Pan German footprint and operations are expected to provide further synergies."

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London, UNITED KINGDOM - 25 July 2011 - euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), announced today that it has signed a strategic partnership with Vodafone Germany, delivering Fibre services to the mobile operator in Frankfurt, Hamburg, Berlin and Munich. The agreement also provides a framework to enable Vodafone to benefit from euNetworks extended footprint.

Vodafone Germany is leading the roll out of the LTE network throughout Germany. More than 4 million households in Germany can already be provided with high speed LTE internet by Vodafone since the wireless frequencies were auctioned off in 2010. Fibre optic networks are a key component of the underlying infrastructure required to support this new mobile standard.

"LTE delivers a technological quantum leap for the industry, and is the first gigabit technology in the mobile sector," said Hartmut Kremling, Chief Technology Officer of Vodafone Germany. "A strong underlying fibre optic network is important for us as we roll out LTE across Germany. euNetworks has this network in key markets. Their demonstrated commitment to this partnership and unique assets deliver great value to our overall network strategy."

"We are delighted to be working with Vodafone on this important development in the mobile sector," said Brady Rafuse, Chief Executive Officer of euNetworks. "As a bandwidth infrastructure provider, with deep fibre assets in Germany, we have the capability and network in place to support Vodafone with a fibre backhaul for their LTE roll out programme. We are working closely together, delivering the underlying infrastructure that is set to support the exponential growth in mobile data traffic."

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London, UNITED KINGDOM - 31 May 2011 - euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), announced today that it has closed its previously announced transaction to purchase LambdaNet Communications Deutschland AG.

Combined, euNetworks and LambdaNet will manage fibre based connectivity to 37 cities in 9 countries. This longhaul connectivity combined with the fibre based metropolitan networks in operation today, supports the growing high-bandwidth needs of its customers.

The combined people, network reach, depth and capability brings greater scale opportunities for euNetworks. The cash flow will enable further deployment of custom fibre-based network solutions across Western Europe in line with demand.

"We are moving forward with our integration plans, working quickly to deliver network synergies from combining the LambdaNet business with euNetworks," said Brady Rafuse, Chief Executive Officer of euNetworks. "With added on-net reach and an expanded product portfolio, customers will benefit from deeper and richer solutions from euNetworks. I am excited for the opportunity ahead."

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London, UNITED KINGDOM - 19 May 2011 - euNetworks GmbH, a subsidiary of euNetworks Group Limited (SGX: H23.SI), announced today that it has reached a definitive agreement to acquire German based LambdaNet Communications Deutschland AG, a 100% subsidiary of the listed company 3U HOLDING AG. The purchase price is a cash payment of €25m (subject to adjustment) plus a payment of principal of €2m on an existing intercompany loan as well as an assumption of certain financial guarantees. LambdaNet will retain the balance of the intercompany loan payable to 3U HOLDING AG of €7.8m. Additionally LambdaNet is expected to have long term capital leases of €10m at closing. The acquisition will significantly strengthen euNetworks' position in the market, particularly in Germany.

LambdaNet's service portfolio includes Ethernet, Wavelength, Colocation, Internet Protocol (IP) based data services and other transmission services. These are delivered to both carriers and enterprises, primarily throughout Germany. LambdaNet operates in Germany and has network and subsidiaries in the Czech Republic and Austria. The business offers services out of 25 data centres across Germany. According to LambdaNet's audited financial results for 2010, the business generated total revenues of €36.8m and EBITDA of €9.7m in the financial year ended 31 December 2010.

"This is a transformational acquisition for our business," said Brady Rafuse, Chief Executive Officer at euNetworks. "Combining LambdaNet with the current euNetworks business will bring us much greater scale to our core German business, as well as adding great customers, people and assets. Over the last 18 months we have been focused on implementing our operational model and delivering strong organic growth. We have however always believed that there is great inorganic growth potential in the market as well. We intend to actively participate in market consolidation where appropriate, and have highly motivated investors supporting us in this activity."

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London, UNITED KINGDOM - 12 May 2011 - euNetworks Group Limited (SGX: H23.SI), announced strong first quarter results, with further improvement in key fundamentals. Total revenues grew by 19% year on year, from €8.8m in 1Q 2010 to €10.5m in 1Q 2011. All revenues were recurring in the quarter. Gross profit for the quarter increased by 22% from 1Q 2010. Gross margin for the quarter was 74.3%, up from 72.7% in 1Q 2010 and 70.1% in 4Q 2010. Adjusted EBITDA(1) was €0.4m for the quarter, achieved on the basis of recurring revenue and continuing the positive progression as the business scales.

"These results are a good start to the year and our funnel of opportunity continues to grow," said Brady Rafuse, Chief Executive Officer of euNetworks. "Sales were strong in the period and will generate new revenues in the next couple of quarters. Our key financial metrics have continued to improve, with growth in revenues year on year, increasing gross margin and positive adjusted EBITDA for the quarter. Our product set is meeting our customer's bandwidth needs, with continued traction in both key and new market segments. I am encouraged by this first quarter performance and look forward to the year ahead."

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London, UNITED KINGDOM - 11 May 2011 - euNetworks Group Limited (SGX: H23.SI), announced it has launched a low latency route, adding Milan to its dedicated finance network. Delivering one of the shortest routes in the market today, euNetworks provides direct exchange-to-exchange connectivity, linking London to Milan with a one way latency of 8.81 milliseconds, Frankfurt to Milan in 4.71 milliseconds and Zurich to Milan in 1.98 milliseconds.

 

euNetworks offers market leading latency performance from all major Multilateral Trading Facilities (MTFs) across Europe, enabling greater access to its euTrade service portfolio.

 

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London, UNITED KINGDOM - 9 May, 2011 - euNetworks Group Limited (SGX: H23.SI), today announced it has launched a new low latency route, adding Zurich to its dedicated finance network. The Company is delivering a low latency solution to Equinix's ZH4 International Business ExchangeTM (IBX®) data centre in Zurich. The new low latency route provides financial services firms with direct access to SIX Swiss Exchange from London with one way latency of 6.83 milliseconds, and from Equinix's Frankfurt data centre (FR2), with one way latency of 2.74 milliseconds. euNetworks now offers market leading latency performance from all major Multilateral Trading Facilities (MTFs) across Europe, enabling greater access to its euTrade service portfolio and some of the shortest routes in the market today.

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London, UNITED KINGDOM - 23 March 2011 - euNetworks Group Limited (SGX: H23.SI), announced a partnership agreement with MESH GmbH, enabling MESH customers to benefit from euNetworks' high bandwidth connectivity solutions while using the Enterprise grade Cloud platform of MESH GmbH.

 

As a European bandwidth infrastructure provider, euNetworks owns and operates 13 deep fibre based metropolitan networks in 5 countries, connected with a high capacity intercity backbone for city-to-city connection. With deeply meshed architecture in the cities, the euNetworks footprint connects up all major Internet exchange points, and data centres, as well as a number of high bandwidth intensive buildings. The network design enables easy fibre based connections to new buildings, delivering the ability to scale capacity in line with a customer's growing bandwidth demands. euNetworks offers connectivity solutions ranging from dark fibre, dedicated fibre, wavelengths and Ethernet with guaranteed latency, security and scalability.

 

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London, UNITED KINGDOM - 1 March 2011 - euNetworks Group Limited (SGX: H23.SI), announced strong quarterly and full year results, with further improvement in key fundamentals. Total revenues grew quarter over quarter by 23%, from €11.1m in 3Q 2010 to €13.7m in 4Q 2010, and by 49% from 4Q 2009. The Group achieved €10.9m in recurring revenues in the quarter, up 10% from 3Q 2010, with non recurring infrastructure sales of €2.8m (€1.2m in 3Q 2010). Gross profit for the quarter increased by 39% year on year to €9.6m, and by 20% from the preceding quarter. Gross margin for the quarter was 70%. Underlying gross margin, excluding non recurring infrastructure sales, was 72%, up from 71% in 3Q 2010. The Group delivered positive adjusted EBITDA(1) in the quarter of €1.8m, up from €0.8m in 3Q 2010.

For the full year, the Group grew total revenues by 32% to €43.8m, with recurring revenues of €39.2m, up 21% from 2009. Network revenues increased significantly from 2009, growing by 55% to €30.4m, with recurring network revenues growing by 37% to €25.8m. Non recurring infrastructure sales in the year were €4.6m. Gross profit for the year increased by 30% to €31.5m. Gross margin was 72%, slightly lower than 73% in 2009, driven by non cash costs associated with non recurring infrastructure sales and lower margins from Internet Protocol (IP) revenues. Underlying gross margin, excluding non recurring infrastructure sales, was 72.7%. Adjusted EBITDA(1) in 2010 was €(0.9)m following two consecutive quarters of positive quarterly adjusted EBITDA. The Group remains focused on this trend in quarters to come, whilst continuing to invest to drive top line revenue growth.

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London, UNITED KINGDOM - 16 December 2010 - euNetworks Group Limited (SGX: H23.SI), announced it has launched a new ultra low latency route from London to Stockholm, marking the completion of the latest phase of its network development programme dedicated to the financial services community. Following high demand in the third quarter for new routes linking Slough to London and London to Frankfurt, with more than 22 new contracts signed, this new London to Stockholm route further strengthens euNetworks' euTrade service portfolio and provides one of the shortest routes in the market today.

 

euNetworks has again demonstrated its industry leading deployment capability, reducing the previous leading latency on the London to Stockholm route by 12%. This new straight point-to-point route offers a round trip time of 22.4 milliseconds.

 

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London, UNITED KINGDOM - 11 November 2010 - euNetworks Group Limited (SGX: H23.SI), announced total revenues for the third quarter of €10.3 million, up 40% from 3Q 2009 and 11% on 2Q 2010. The Group achieved €9.1 million in recurring revenues in the quarter, up 24% from 3Q 2009, with €1.2 million of one offs. Gross profit for the quarter increased by 38% year on year to €8.0 million, and by 7% on the preceding quarter. Gross margin dropped slightly to 77% in the quarter from 80% in 2Q 2010. This was largely due to the timing of costs associated with the setting up of new euTrade routes in advance of taking on revenue and also certain one-off costs relating to Internet Protocol (IP) Transit. The Company continued to carefully manage costs while growing revenues, achieving positive Adjusted EBITDA1 of €0.8 million for the quarter.

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London, UNITED KINGDOM - 13 September 2010 - euNetworks Group Limited (SGX: H23.SI), announced the appointment of James Thomas to the management team, taking up the role of Chief Financial Officer (CFO) for the company. This appointment is effective 14 September 2010, based at the London headquarters of the business, and completes the euNetworks leadership team. He will also join the Board of Directors.

 

James Thomas joins euNetworks as CFO following a number of years working in the telecoms industry. Most recently Mr. Thomas was Group Finance Director for TalkTalk Telecom Group Plc, leading the de-merger activities from the Carphone Warehouse Group Plc. He worked for the Carphone Warehouse Group Plc from 2004 as the Finance Director of the TalkTalk business unit. Thomas has worked for Deloitte and Andersen as a management consultant, providing strategy, operational and financial services to technology, media and telecoms clients. He also gained valuable audit experience, working in the Arthur Andersen audit practice for five years. He is a qualified chartered accountant in the United Kingdom and has a Master of Business Administration from Manchester Business School.

"I am absolutely delighted that James has joined the euNetworks team," said Brady Rafuse, Chief Executive Officer of euNetworks. "The role of CFO at euNetworks is fundamental to our development and the scaling of our business. James has strong experience driving growth businesses forward and is a great fit in the team. His financial skills and international experience are hugely valuable assets, and he will lead the building of our finance function and work with me to solidify our institutional relationships within the financial community."

 

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London, UNITED KINGDOM - 2 September 2010 - euNetworks Group Limited (SGX: H23.SI), announced it has launched a new ultra low latency route from London to Frankfurt. The company has one of the shortest routes in the market today that is uniquely optimised for connectivity into Multilateral Trading Facilities (MTFs) and key data centres. This new route further demonstrates the in-house capability that euNetworks has developed, building ultra low latency connectivity networks to support the bandwidth needs of its growing financial client base. This also marks the completion of the second phase in the development of euNetworks' network dedicated to the financial services community.

 

The new London to Frankfurt route coupled with the new Slough to London route, delivers a unique solution for the trading market, avoiding unnecessary Carrier points of presence and delivering industry leading latencies for direct exchange-to-exchange connectivity.

 

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London, UNITED KINGDOM - 1 September 2010 - euNetworks Group Limited (SGX: H23.SI), announced it has launched the first phase of an overlay network, dedicated exclusively to the needs of the financial community. The network platform is supported by dedicated fibre and dedicated optronics, ensuring euNetworks' euTrade services provide the lowest possible latency. As a company who specialises in designing, engineering and building ultra low latency connectivity networks, deploying a network exclusively for the finance market is a natural step in continuing to support the bandwidth needs of the financial services community. Optimising fibre routes, avoiding unnecessary Carrier Points of Presence (PoPs) and deploying latest generation optical transmission equipment has enabled industry leading latencies for direct exchange-to-exchange connectivity, a key requirement for the trading market today.

 

As part of a network development programme underway, euNetworks has launched a new ultra low latency route running from Slough in West London to key financial exchanges and data centres in the City of London. euNetworks has reduced the latency on this critical route by over 20% and is now providing sub 500 microsecond round trip connections between Slough and sites in the City of London.

 

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London, UNITED KINGDOM - 13 August 2010 - euNetworks Group Limited (SGX: H23.SI), announced quarterly growth in total revenue of 29% against 2Q 2009, achieving €9.4 million revenue. The Group achieved €8.8 million in recurring revenue in 2Q 2010, with €0.6 million in one offs, and grew total revenue by 16% against 1Q 2010. Gross margin was 80% in the quarter, flat from 1Q 2010 and similar to 2009. Gross profit increased by 27% from 2Q 2009 to €7.5 million, and adjusted EBITDA broke even against a loss of €0.8 million. Net loss for the period was €14.4 million after an exceptional charge of €2.6 million related to the redemption of the balance of the 2012 bond.

 

For 1H 2010, total revenue was €17.4 million, growing 21% from 1H 2009. Gross profit increased by 20% to €13.9 million, with gross margin of 80%. Adjusted EBITDA loss increased to €1.7 million against €0.6 million. Net loss for the first half 2010 was €22.8 million after exceptional charges of €2.6 million related to the redemption of the balance of the 2012 bond in 2Q 2010.

 

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London, UNITED KINGDOM – 20 July 2010 - euNetworks Group Limited (SGX: H23.SI), announced it has been named a supplier of connectivity to NYSE Euronext’s SFTI® Access Centres, enabling firms to connect to the SFTI® Optic service to access their racks within the new NYSE Euronext European Liquidity Centre. euNetworks provides networking services that form part of the NYSE Euronext European backbone. As a supplier of connectivity to key access centres, euNetworks now supports the networking requirements of NYSE Euronext clients.

NYSE Technologies’ Secure Financial Transactions Infrastructure® (SFTI®) network provides a single point of connectivity with lowest-latency access to multiple markets. It is designed to be the industry’s most secure and resilient network, specifically built for electronic trading and market data traffic. SFTI® Optic is the new wavelength service, launched for the first time to offer lowest latency access specifically for colocation customers within the new NYSE Euronext European Liquidity Centre.

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London, UNITED KINGDOM – 14 June 2010 - euNetworks Group Limited (SGX: H23.SI), announced the appointment of John Franklin to the management team, taking up the role of Chief Operating Officer (COO) for the company. This appointment is effective 14 June 2010, based at the London headquarters of the business.

John Franklin joins euNetworks as COO following a number of years working in the telecoms industry, both in Europe and internationally. Franklin’s career spans companies such as British Telecom, Level 3 Communications, Alcatel Telecommunications and GPT Telecommunications. Most recently he was Cluster Director for Leased Access globally at British Telecom. Franklin managed the development of Level 3’s Internet Protocol fibre- based network backbone in Europe before moving into roles that gave him product, engineering, operational and technology responsibility within the global business. His experience fits well with the demands he will face as COO of euNetworks

“The addition of John Franklin to euNetworks further strengthens what is already an impressive line up of industry experience in the team,” said Brady Rafuse, Chief Executive Officer of euNetworks. “This is a key position for the business as we move forward with plans in place. John brings us the skills we need operationally to drive forward with key projects that are crucial to a successful operating model. He will bring great value to the business.”

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London, UNITED KINGDOM – 13 May 2010 - euNetworks Group Limited (SGX: H23.SI), announced quarterly growth in total revenue of 14% against first quarter 2009, achieving €8.0 million revenue. Gross Margin was 80%, remaining constant compared to first quarter 2009. Revenue growth has been accompanied by a 14% increase in direct costs from first quarter 2009. Focus on growing long term recurring revenue continued in the quarter, with 13 new customer wins in the finance, wholesale and media segments, with an average contract length of 25 months.

At the beginning of 2010, the Company changed the way gross profit is presented. Gross profit is now determined as revenues less expenses directly related to revenues, or „Direct Network Expense‟. The management and directors of the Company believe that this presentation of gross profit is in line with standard telecoms industry practice and will provide a clearer picture of the profitability of current and future customer revenues.

“We have made good progress through the first quarter, delivering revenue growth, gaining more long term recurring revenue contracts and establishing customer relationships which will deliver further revenue growth to the business in the future,” said Brady Rafuse, Chief Executive Officer of euNetworks. “Improving our position in the European market as a bandwidth infrastructure provider is crucial as we move through 2010. Following the simplification of our product portfolio in the quarter along with increasing our local focus to leverage market growth opportunities, I am confident we are moving forward with our plan. The completion of the Rights Issue on 6 April 2010 and a growing sales funnel provides a solid platform for the year.”

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London, UNITED KINGDOM – 12 April 2010 - euNetworks Group Limited (SGX: H23.SI), today announced the appointment of two new Directors to their Board. These appointments are effective 12 April, 2010.

Daniel Aegerter is Chairman and Founder of Armada Investment Group which he established as his family office organisation following the successful merger of his B2B software company, TRADEX Technologies, with Ariba for $5.6 billion in March 2000. As Chairman and Chief Executive Officer of TRADEX, Aegerter was responsible for setting the strategic direction for the company. Since that time and in his position at Armada Investment Group, he has been actively involved in initiating private equity and venture capital transactions, and has invested across asset classes and regions. He founded his first business in 1988 and is involved in several social investment projects and is a member of the World Economic Forum. Aegerter is a long standing investor in euNetworks.

Kai-Uwe Ricke has worked in the telecommunications industry for nearly 20 years, and was Chief Executive Officer of Deutsche Telekom AG. Today he is Partner and Chairman of the Board for Delta Partners and is also active in private equity. He is an investor and a member of the advisory board of Kabel Baden-Württemberg and a member of the advisory board of Exigen Capital, a U.S. based private equity firm. Ricke holds seats as Independent Director on the managing boards of Italian Insurance company Generali SpA and the Dubai based Oger Telecom Ltd. He also serves as a member of the supervisory board of United Internet AG, Germany.

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London, UNITED KINGDOM – 26 February 2010 - euNetworks Group Limited (SGX: H23.SI), announced quarterly growth in total revenue of 25% against fourth quarter 2008, achieving €8.5 million revenue. This growth includes one-off revenue of €0.8 million relating to asset sales. Excluding one-offs, recurring revenue grew 13% against fourth quarter 2008. Gross margin was 48% in the quarter, up from 43% in 2008. During the quarter, 24 new customers were signed. The net loss from operations, and before exceptional items was €5.6 million, improving from €7 million in quarter four 2008.

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AMSTERDAM, 9th February 2010 - Interxion, a leading European operator of carrier-neutral data centres, and euNetworks, Europe’s foremost provider of mission-critical, high-performance data services, today announced a non-exclusive partnership to provide traders with turnkey pan-European colocation and low-latency access to key liquidity venues. Solution delivery will be supported through euNetworks’ presence in Interxion data centres in France, Germany, Ireland, the Netherlands and the United Kingdom and combines Interxion’s Financial Hub offering for capital markets participants with the euTrade, next-generation pan-European trading solution.

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