This week, leading global cloud networking provider GTT Communications, Inc. (NYSE: GTT) released its second-quarter financial results, which demonstrated strong continued growth.
Compared to this quarter last year, revenue increased by 35.6 percent, from $95.1 million to $128.9 million. Since 1Q16, revenue grew by 3.6 percent. Net income was reported to be $0.1 million, compared to negative $11.1 million last year at this time. Yet, this second-quarter figure represents a net income loss of $0.9 million from the prior quarter.
Another noteworthy finding from the report is that adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increased by 55.1 percent to $30.3 million in 2Q16. In 2Q15, adjusted EBITDA measured just $19.5 million. In 1Q16, adjusted EBITDA was $28.9 million. The adjusted EBITDA margin grew to 23.5 percent, compared to 20.5 percent in 2Q15 and 23.2 percent in 1Q16.
“In the second quarter, GTT extended its long-running streak of delivering revenue and adjusted EBITDA growth,” said GTT President and CEO Rick Calder following the announcement. “We completed the integration of Telnes Broadband in June, and we are focused on accelerating organic growth in the second half of the year from our significant investments in the direct and indirect sales channels. In addition, we will continue to look for opportunities to supplement our organic growth with accretive acquisitions, using our disciplined and proven approach to M&A.”
Chief Financial Officer Mike Sicoli spoke about how the report indicates that strong growth can be expected for the remainder of 2016.
“Second-quarter results demonstrated GTT’s consistent performance,” he said. “We are delivering a rare and powerful combination of growth in both revenue and margins, showing our ability to realize significant cost savings from prior acquisitions and to reinvest them into substantial investments in organic growth. We remain on track to deliver a strong year and continue to drive toward our next financial objective of $1 billion in revenue and $250 million in adjusted EBITDA.”
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