TDS revenues rise to $1.4 billion on triple play, managed services gains
TDS, Inc. (NYSE: TDS) reported fourth-quarter 2012 revenue of $1.34 billion, up 2 percent from $1.31 billion in Q4 2011 due to gains in both consumer and managed business services.
The service provider on Tuesday reported a loss of $41.8 million, or $0.39 per diluted share, respectively, versus $6.2 million and $0.06, respectively, in the same quarter last year.
TDS Telecom, the wireline subsidiary of TDS, reported that Q4 2012 revenues were $221.5 million, up 7 percent, or $206.8 million in Q4 2011.
On the consumer side of TDS Telecom, the ILEC continued to ramp up penetration of its IPTV product TDS TV and expand broadband access in both existing markets and in states where it received broadband stimulus grants. ILEC triple play service penetration was 31 percent in its markets.
"TDS Telecom is focused on increasing residential TDS TV and broadband penetration in existing markets, and expanding broadband access through stimulus projects in progress nationwide," said LeRoy T. Carlson, Jr., TDS president and CEO, in the earnings release.
To enhance its broadband service base, the telco reached an agreement to acquire cable operator Baja Broadband for $267.5 million. By purchasing Baja, TDS will gain 74,000 video subscribers, 56,000 high-speed broadband subscribers and 15,000 digital voice subscribers serving residential and commercial customers in Colorado, New Mexico, Texas and Utah.
The telco continued to make progress in growing its commercial business during the quarter, adding 41,100 new managedIP (ILEC and CLEC) customers.
Carlson said that the telco will grow the commercial customer base by expanding "the managedIP portfolio and building its hosted and managed services business by providing integrated, end-to-end IT solutions, including ReliaCloud, to mid-market customers."
Excluding the effects of the acquisition of Baja Broadband, TDS Telecom forecast 2013 revenues to be between $850-$900 million, and a total of $4.6 to $4.8 billion for TDS.
Shares of TDS were listed at $23.91, down $1.46, or 5.75 percent, in morning trading on the Nasdaq stock exchange.
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