Zayo yearly sales drop, profits rise on lower operating costs

BOULDER  — Year-over-year revenues dropped by $24.5 million for Zayo Group Holdings Inc. (NYSE: ZAYO), but the company’s profits increased over the same period.

The Boulder IT infrastructure company posted $2.578 billion in sales for the 2019 fiscal year ending June 30 compared to $2.602 billion in the previous year, according to its yearly report filed Wednesday with the U.S. Securities and Exchange Commission.

However, it posted $150 million in profits, a $47.1 million increase from last year, mostly from lower operation costs and depreciation.

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The report said Zayo’s pending sale to two private investment firms is still estimated to close in the first half of 2020, in line with previous statements. However, the company reported incurring $12.9 million in merger-related costs.

The annual report was delayed several days after Zayo said a third-party software provider couldn’t attest to the company’s financials due to a data collection issue.

Zayo stock rose 19 cents over Wednesday’s trading period to close at $33.75.