euNetworks Reports Fourth Quarter and Full Year 2010 Results

London, UNITED KINGDOM – 1 March 2011 – euNetworks Group Limited (SGX: H23.SI), announced strong quarterly and full year results, with further improvement in key fundamentals. Total revenues grew quarter over quarter by 23%, from €11.1m in 3Q 2010 to €13.7m in 4Q 2010, and by 49% from 4Q 2009. The Group achieved €10.9m in recurring revenues in the quarter, up 10% from 3Q 2010, with non recurring infrastructure sales of €2.8m (€1.2m in 3Q 2010). Gross profit for the quarter increased by 39% year on year to €9.6m, and by 20% from the preceding quarter. Gross margin for the quarter was 70%. Underlying gross margin, excluding non recurring infrastructure sales, was 72%, up from 71% in 3Q 2010. The Group delivered positive adjusted EBITDA(1) in the quarter of €1.8m, up from €0.8m in 3Q 2010. For the full year, the Group grew total revenues by 32% to €43.8m, with recurring revenues of €39.2m, up 21% from 2009. Network revenues increased significantly from 2009, growing by 55% to €30.4m, with recurring network revenues growing by 37% to €25.8m. Non recurring infrastructure sales in the year were €4.6m. Gross profit for the year increased by 30% to €31.5m. Gross margin was 72%, slightly lower than 73% in 2009, driven by non cash costs associated with non recurring infrastructure sales and lower margins from Internet Protocol (IP) revenues. Underlying gross margin, excluding non recurring infrastructure sales, was 72.7%. Adjusted EBITDA(1) in 2010 was €(0.9)m following two consecutive quarters of positive quarterly adjusted EBITDA. The Group remains focused on this trend in quarters to come, whilst continuing to invest to drive top line revenue growth.