TDS Telecom Q4 2013 jumps to $272M on increases in TV, managedIP service results
TDS Telecom (NYSE: TDS) reported that its fourth-quarter 2013 revenue rose 23 percent year-over-year to $272 million with increases in commercial managedIP customers and IPTV subscriptions.
During the quarter, the service provider added 1,600 new IPTV customers 6,000 managedIP customers. However, it did lose 2,500 traditional wireline broadband customers and 6,100 POTS voice customers.
One of the key moves TDS made during the quarter was to rebrand its collection of hosted and managed service business assets under the OneNeck IT Solutions brand.
"TDS Telecom brought high-speed broadband and TDS TV services to more markets in 2013, and maintained customer loyalty through service bundling," said LeRoy T. Carlson Jr., TDS president and CEO, in the earnings release. "Commercial managedIP connections increased substantially, and TDS Telecom began introducing new services in our cable markets."
It also saw some positive trends in the Baja Broadband cable operations. While it did lose 1,100 video subscribers, it added 1,200 new broadband and 400 voice service subscribers.
TDS sees cable as one of its key growth targets and is interested in purchasing other regional cable operators. "Cable is an attractive growth opportunity, and we plan to build our business through additional acquisitions in 2014," Carlson said.
Carlson's comments should not be all that surprising.
Earlier this month, he told investors at the Stifel 2014 Technology, Internet & Media Conference that they would consider purchasing additional cable assets. However, he cautioned that any purchase would have to meet three common criteria: good demographics, price and not be located in areas where Verizon (NYSE: VZ) currently offers its FiOS fiber to the home (FTTH) service.
Looking forward, TDS Telecom has forecast full year 2014 operating revenues of $1.05 billion to $1.1 billion.
From an overall revenue perspective, TDS Telecom's parent company Telephone and Data Systems Inc. reported operating revenues of $1.18 billion, down from $1.34 billion in the same period a year ago. The net loss attributable to TDS shareholders and related diluted loss per share were $6.1 million and $0.06, respectively, for the fourth quarter of 2013, compared with $41.9 million and $0.39, respectively, in the fourth quarter of 2012.
It said that the year-over-year revenue trends were affected by U.S. Cellular's Divestiture Transaction, the deconsolidation of certain U.S. Cellular partnerships, and acquisitions made by TDS Telecom.
Shares of TDS were listed at $23.53, down 84 cents or 3.45 percent, in Wednesday morning trading on the New York Stock Exchange.
- see the earnings release
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