Lumos revenue rises to $52.7 million on strong strategic data gains
Lumos Networks (Nasdaq: LMOS) on Thursday reported Q4 2012 revenue of $52.7 million, up from $51.1 million in Q4 2011 due to gains in its strategic data service segment revenues for business customers and an uptick in fiber to the tower (FTTT) installations.
Strategic data revenue, which represented 52 percent of the telco's total sales, grew 5 percent sequentially to $27.4 million from $26.1 million in Q3 2012. On a year-over-year basis, the segment's revenue grew 17 percent over Q4 2012.
Tim Biltz, CEO and president of Lumos, said in the earnings release that this is "the third straight quarter of accelerating revenue growth" for the strategic data product segment.
Inside the strategic data segment, enterprise and carrier data rose to $9.2 and $13.0 million, respectively, while IP services climbed to $4.75 million.
To serve this growing segment, Lumos increased its on-net building footprint to 1,196, up from 1,150 buildings in Q3 2012.
Likewise, Lumos reported gains in the carrier services segment, particularly in FTTT sales. During the quarter, it increased its FTTT footprint to an additional 109 sites to serve a total of 370 as of the end of December 2012.
In its rural ILEC business, Lumos reported that revenues rose slightly from gains in legacy voice revenues and video services. Legacy voice and access revenues rose to $4.8 and $7.7 million, respectively. However, rural broadband subscribers declined slightly to 15,181 in the quarter.
Looking toward 2013, Lumos has forecast revenue to be about $52 million and adjusted EBITDA approximately $23 million. For the full year 2013, the ILEC expects revenue to fall in the range of $208 to $212 million and adjusted EBITDA in the range of $94 to $97 million.
Later this year, Lumos said it plans to explore bank financing options to fund its strategic data growth plans over the next few years.These plans reflect the outlay of Lumos' network assets.
Tim Biltz said during the 40th Annual Global Media and Communications Conference in December that Lumos has 10 percent of TDM "mindshare" in its current markets, but sees opportunities to edge out to new customers that are within 10 miles of its fiber footprint to provide Ethernet and IP-based services. The provider will focus on two key areas: big data and mobile data.
Shares of Lumos Networks were trading at $11.25, up $0.45 or 4.17 percent, on the Nasdaq stock exchange
- see the earnings release
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