GTT reaches $1 billion in annualised revenues
04 May 2018 | Natalie Bannerman
GTT Communications, has announced its financial results for the quarter ended 31 March 2018.
For the period the company reported annualised revenue of $1 billion and $250 million of annualised adjusted EBITDA.
In all in all revenue for the period grew 40.2% year-on-year (YoY) to $260.7 million up 4.6% sequentially. Adjusted EBITA for the quarter grew by 23.4% YOY to £62.7 million, which is an increase of 3.1% sequentially.
Net loss for the quarter came in at $7 million, a fall compared to the reported net loss of $13.1 million in Q1 of 2017 and the net loss of $49.5 million in Q4 of 2017.
The company says that the Q1 2018 net loss was as a result of several non-recurring costs, including $7.8 million in exit, transaction and integration costs related to the Custom Connect, Accelerated Connections and Interoute acquisitions, as well as $17.2 million in expenses related to a foreign currency hedge entered into in preparation for the Interoute acquisition. The Q4 2017 net loss also included several significant non-recurring costs, mostly related to taxes.
Adjusted EBITDA margin was 24.1% in comparison to 27.3% in Q1 of 2017 and 24.4% in Q4 of 2017.Th company say that the decline compared to last year is because of the Global Capacity acquisition, which had lower standalone margins; on a pro forma basis, and that the adjusted EBITDA margin actually increased.
Looking at the figures using constant currency Q1 2018 revenue and adjusted EBITDA would have been lower than reported by $4.3 million and $0.6 million, respectively, compared to Q1 of 2017, and Q1 2018 revenue and adjusted EBITDA would have been lower than reported by $1.6 million and $0.3 million, respectively, compared to Q4 of 2017.
On a pro forma basis: Q1 2018 revenue and adjusted EBITDA grew 6.7% and 13.7%, respectively, over 1Q17, while Q1 2018 revenue and adjusted EBITDA grew 4.0% and 2.6%, respectively, over Q4 of 2017.
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