Cincinnati Bell takes a hit in Q4 09
Cincinnati Bell's cost cutting efforts in its wireline segment may be providing it with greater cost savings, but it wasn't enough to prevent the ILEC's Q4 profit from dropping to $6.8 million from $37.5 million in Q4 08. Revenue was also down from three percent to $345.2 million from $356.8 million in Q4 08.
Overall wireline revenue was $773 million, a four percent decrease over 2008 that can be traced to traditional access line loss. Cincinnati Bell also had to deal with $11 million in restructuring costs resulting from layoffs in its wireline segment. In 2009, Cincinnati Bell laid off 130 workers in its wireline business, which it says will save the company $8 million in annual costs.
Not everything was doom and gloom, however. The company's cost cutting efforts helped offset its losses in that its $261 million operating income was in line with what it reported last year, while adjusted EBITDA was down only three percent versus 2008. And while access lines were down, it did add 10,000 new broadband Internet customers, a figure that includes its new FTTH-based Fiopics offering.
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