Consolidated Communications-SureWest synergy boosts Q3 revenue to $157M
Consolidated Communications (Nasdaq: CNSL) on Thursday reported that Q3 2012 revenues, including results from SureWest Communications, which it purchased in July, were $157 million, up from $92.5 million in Q3 2011.
Pro forma revenues were $157.0 million, up $130.8 million percent from $155.7 million in Q3 2011.
Meanwhile, operational income was $10.1 million, down from $15.2 million in Q3 2011. The telco said the decrease is related to $14.5 million in severance and integration related costs, "which were partially offset by expense reductions tied to their synergy efforts."
"The legacy business continued to perform well, while the results from the newly acquired SureWest assets were better than expected," said Bob Currey, President and CEO of Consolidated Communications, in the earnings release.
As it has reported in previous quarters, ongoing increases in data, video, and wholesale wireless backhaul revenue offset expected legacy POTS voice service revenue declines.
During the quarter, the telco added 13,671 new broadband subscribers, reaching a total of 246,817 as of the end of September, while adding a total of 7,144 video subscribers. In total, Consolidated had 246,817 broadband subscribers and 105, 202 video subscribers.
Meanwhile, the ILEC continued to see ongoing declines in both ILEC and CLEC access lines, losing 13,605 and 5,008 connections, respectively. It ended the quarter with a total of 270,960 traditional ILEC access lines and 131,457 CLEC lines.
Looking forward, the service provider reiterated its 2012 guidance of capex spending to be between $110-$115 million and cash interest expense to be between $63.0 million to $67.0 million.
Consolidated was trading at $15.81 on Thursday at the end of day trading on the NASDAQ stock exchange.
- see the earnings release
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