InterXion Holding N.V. Announces Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Reaffirms Earnings Guidance for the for Full Year 2018; Provides Tax Rate Guidance for the Third Quarter and Fourth Quarter of 2018
For the six months, the company announced revenue of 272,660,000 compared to 234,773,000 a year ago. Operating income was 53,145,000 compared to 48,148,000 a year ago. Profit before income taxes was 18,846,000 compared to 26,941,000 a year ago. Net income was 12,238,000 or 0.17 per basic and diluted share compared to 19,914,000 or 0.28 per diluted share a year ago. Adjusted EBITDA was 124,306,000 compared to 105,650,000 a year ago. Net cash flows from operating activities were 66,192,000 compared to 77,272,000 a year ago. Purchase of property plant and equipment were 211,751,000 compared to 106,322,000 a year ago. Purchase of intangible assets was 4,958,000 compared to 4,876,000 a year ago. Adjusted net income was 20,753,000 or 0.29 per basic and diluted share compared to 19,587,000 or 0.27 per diluted share a year ago.
The company expects that on a quarterly basis the cash tax rate for third quarter and fourth quarter of 2018 will revert towards the level seen in first quarter of 2018 of 22%.
For the year 2018, the company expects the effective tax rate to return to normal range of 25% to 27%. The company expects ARPU to remain within the range of EUR 414 and EUR 418 with continued growth from energy in cross-connects tempered by the initial diluted impact of new customer installations; cross-connect revenue to represent approximately 6% of total revenue for the year; nonrecurring revenue to be in the range of EUR 6 million to EUR 7 million per quarter for the remainder of 2018 consistent with the levels that the company have seen over the last 12 months; sales and marketing costs to be within the range of 7% to 8% of total revenue, and other G&A cost to remain within that typical range of 8% to 9% of total revenue. Revenue in the range of 553 million to 569 million, adjusted EBITDA in the range of 250 million to 260 million, and capital expenditures (including intangibles) in the range of 365 million to 390 million.