Lumos Networks Q3 benefits from 5% rise in strategic service revenue
Lumos Networks (Nasdaq: LMOS) reported in its Q3 earnings that total revenue was $52.0 million, up year-over-year from $51.6 million in Q3 2011 as strategic data service revenues grew sequentially by 5 percent.
The telco's total adjusted EBITDA was $22.3 million in Q3 2012, up from $24.6 million in Q3 2011 and $21.1 million in Q2 2012.
"For the first time in the Company's history strategic data revenue represented half of our total revenue for the quarter and it grew sequentially by 5 percent," said Tim Biltz, CEO and president of Lumos, in the earnings release.
Biltz added they "believe that strategic data revenue will continue to grow as a percent of our total revenue and we are on track to achieve year-over-over strategic revenue growth in excess of 16 percent for 2012."
During the third quarter, the service provider continued to focus on driving away at its transformation into becoming a bigger player in the business services space by ensuring that 75 percent of its total capex was allocated towards success-based strategic data projects in its enterprise and carrier data customer segments, up from less than 50 percent in 2011.
In total, all three elements of its strategic product set--one that includes enterprise data, carrier data and IP services--grew 5 percent.
Enterprise data rose to $9.4 million, up sequentially from $9.04 million in Q2 2012, while carrier data and IP services climbed to $11.9 million and $4.7 million, respectively. Overall, strategic data rose sequentially to $26.1 million, up from $24.9 million in Q2 2012.
A key element in its wholesale business was once again Fiber to the Tower (FTTT). Lumos said it is on track to complete about 300 fiber builds to area wireless towers by the end of the year, up from 150 towers at the end of 2011.
Meanwhile, legacy voice and traditional network access both declined, to $11.2 million and $2.41 million respectively.
Looking towards Q4, Lumos forecast total revenue to be about $52 million and adjusted EBITDA to be approximately $22 million.
Lumos also updated its annual forecast for 2012 for revenue and adjusted EBITDA, with total revenue expected to reach about $206 million and adjusted EBITDA expected to be about $88 million. Capital expenditures for 2012 are expected to be about $60 million.
Lumos was trading at $8.45, down $0.25, or 2.87 percent, on the NASDAQ in late day trading on Thursday.
- see the earnings release
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