Zayo misses on earnings for third quarter; COO resigns

BOULDER — Zayo Group Inc. (NYSE: ZAYO) posted third-quarter earnings of 9 cents per share, missing analyst expectations by 1 cent.

As well as missing on earnings, the company’s president and chief operations officer is resigning.

Andrew Crouch’s resignation will take place immediately but he has no immediate plans. Zayo said the resignation is not related to his or the company’s performance

The Boulder-based telecom company also missed on revenue by $5.4 million; however, it did increase revenue year-over-year by 18 percent to $649 million.

About $532 million of the company’s revenue stemmed from the communications infrastructure segment of Zayo’s business, while nearly $118 million came from its Allstream segment. At the end of 2015, Zayo acquired Canadian telecom company Allstream for $348 million.

Net income fell year-over-year, from $27 million in the third quarter of 2017 to $23.4 million in the third quarter of 2018.

During the quarter, Zayo announced its decision to sell Scott-Rice Telephone Co. for $42 million to New Ulm Telecom Inc. That transaction is expected to close by June 30.

Zayo is also considering converting to a real estate investment trust for tax purposes and may begin speaking to the IRS.