UPDATED: TDS Telecom's revenue stays constant at $199M, driven by triple play, managed services
TDS Telecom (NYSE: TDS) is once again seeing the fruits of its broadband and managed services labor pay off as Q2 2011 revenue remained stable at $199 million.
From a corporate perspective, Telephone and Data Systems revenue (TDS), which includes US Cellular and TDS Telecom, rose 4 percent to $1.4 billion.
As seen with other ILECs, TDS Telecom reported that residential triple play bundle penetration (voice, video and broadband data) grew to 27 percent.
"TDS Telecom had a solid quarter, with stable operating revenues and higher operating income," said LeRoy Carlson, TDS President and CEO. "The company continued to grow ILEC data revenues through increases in hosted and managed services revenues and high-speed data customers."
While TDS lost 700 access voice lines in the quarter, it added 3,900 new broadband subscribers. In addition, the ILEC began work on the first of 44 new broadband stimulus projects to serve customers in its rural areas.
Likewise, TDS' business services saw growth in the second quarter as it increased its managedIP stations in both its ILEC and CLEC territories from 19,700 in Q1 to 35,000 in Q2. TDS enhanced its business services portfolio by acquiring OneNeck IT Services Corp. in late June.
"TDS Telecom's aggressive commercial sales strategy helped the company achieve a strong year-over-year increase in managedIP stations," said Carlson.
Financial analysts that participated in a Thomson Reuters poll forecast the service provider to report earnings of $0.35 per share on revenues of $1.27 billion for the quarter.
For the rest of 2011, TDS expects TDS Telecom revenue for fiscal 2011 to be in a range of $800 million to $830 million, up from its prior outlook of $780 million to $810 million.
- see the release
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