Zayo’s losses widen as revenue grows

BOULDER – Broadband infrastructure provider Zayo Group Holdings Inc. saw revenue increase by 20 percent in the first quarter of its fiscal year versus last year, though its net loss increased four-fold.

The rapidly growing Boulder-based company, which had a lucrative initial public offering last month, reported revenue for the quarter ending Sept. 30 of $320.6 million, up from $268.1 million the previous year.

The growth came from a combination of acquisitions and organic growth. Zayo made two acquisitions in the quarter, buying Paris-based Neo Telecoms for $78.1 million and Atlanta-based Colo Facilities Atlanta for $52.5 million.

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But the rapid growth pace has also helped lead to losses on the bottom line. Zayo reported a net loss of $110.5 million for the first quarter, up from $27.4 million the year before. The quarter ended before the company went public.

Zayo’s Oct. 17 IPO brought in $400 million for the company and selling stockholders.

The company’s share price was $23.58 in late-afternoon trading Friday, equal to the previous day’s close and well ahead of the $19 IPO price.