GTT records record year of growth, even before Hibernia acquisition
GTT Communications has reported revenue up 41% in 2016 to $521 million compared with the previous year, even without the acquisition of Hibernia Networks – as that deal was completed in the first few days of 2017.
If Hibernia had been part of GTT in 2016, revenue would have been almost $698 million, compared with $606 million in 2015.
Year on year comparisons are difficult, because GTT has been a highly acquisitive company. In 2016 it bought two other companies, One Source Networks and MegaPath, and their results have also to be included on a pro forma basis.
Rick Calder, GTT president and CEO, said: “In 2016, GTT recorded another record year of growth and strategic achievement, firmly establishing our position as the challenger brand in our industry.”
He expects the company will follow its $590 million purchase of Hibernia with more takeovers. “For 2017, we will continue to drive execution of our growth strategy by expanding our portfolio of cloud networking services, extending our global network reach and delivering an outstanding client experience by living our core values of simplicity, speed and agility,” said Calder.
“In January, we completed the acquisition of Hibernia Networks, and integration is on schedule.”
CFO Mike Sicoli added: “We are well positioned to drive continued growth in revenue, profitability and cash flow in 2017, and with the Hibernia Networks acquisition complete, we have accelerated our progress toward our next financial objectives of $1 billion in revenue and $250 million in adjusted EBITDA.”
GTT – without Hibernia – increased its capital expenditure in 2016 to $24.2 million, equivalent to 4.6% of revenue. In 2015 the figures were $14.1 million and 3.8% of revenue.
Hibernia Networks has historically had a much higher capex than the capex-light GTT: in 2015 the company spent more than $161 million, though much of that was on the low-latency Hibernia Express cable across the Atlantic, which came into operation in September 2015.