2008 was an important year for Zayo Group. As we enter 2009, the Zayo team has given itself a very important gift—financial strength. We are on the verge of achieving free cash flow breakeven, using primarily cash that is already within the company. We are accomplishing this while continuing double digit revenue growth. We are accomplishing this through achieving EBITDA profitability that is materially in excess of our original business plan. We are accomplishing this while continuing to invest substantial discretionary capital into our networks, which is the fuel that drives our revenue growth. We are accomplishing this in an economic environment that is the worse since perhaps the Great Depression.

We are accomplishing this as a team of hard working, dedicated, and capable people.  I offer my sincere thanks to the Zayo team.

Financial strength is important in any business environment. But it is especially important in a troubled economy. Every week we are hearing about RIFs and bankruptcies. The biggest gift we have given to ourselves is financial security.

In a subsequent notes, I will reflect more on how much we accomplished in 2008. In this note and the next few, I will focus on 2009.

Zayo Group is in practice the combination of three loosely related telecom companies: Zayo Bandwidth, Onvoy Voice Services and Zayo Managed Services. These three companies operate autonomous from one another. Very little shared services corporate support is provided to these business units. As a result, it will be important to articulate the 2009 goals by business unit, which I will do in subsequent blog posts. This post will focus on Zayo Group’s overall goals.

Zayo Group has four primary goals:

1. Demonstrate Financial Excellence
2. Become, in the eyes of Zayo Group employees, one of the best places to work in the telecom industry
3. Ensure each of the three business units is a viable and valuable business entity in its own right
4. Continue to be active as an industry consolidator

The order of these goals roughly reflect the relative priority of each goal. I will expand on each of these in a subsequent post.

So Now What?

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Related posts:

2009 #2 Priority: Zayo becoming a “Best Place to Work”
Zayo Priority #1A: Financial Excellence thru Results
Envysion’s 2008 Accomplishment: Creating MVaaS (continued)
Envysion’s 2008 Accomplishment: Creating MVaaS
Zayo Priority #1B: Financial Excellence thru Accurate Forecasts