TDS Telecom's OneNeck IT revenues rise to $67.9M on strong managedIP subs
TDS Telecom's commercial OneNeck IT Solutions subsidiary was the star performer in its portfolio, with revenues of $67.9 million, up from $41.4 million in the same period a year ago.
During the quarter, the service provider added 2,300 new managedIP subscribers, bringing its total to 133,300. managedIP service revenues also rose 19 percent during the period to $25.7 million from $4.37 million in the same period a year ago.
Inside the HMS division, equipment sales were also a key factor, with revenues of $40.4 million, up from $18.2 million in the second quarter of 2013.
"In our hosted and managed services business, OneNeck IT Solutions, we increased revenues through growth in recurring services and through the effect of acquisitions," said LeRoy T. Carlson Jr., TDS president and CEO, in the earnings release.
However, overall commercial revenues were impacted by voice and broadband declines. The telco ended the quarter with a total of 206,200 voice and 26,000 broadband customers, down from 229,100 and 28,200, respectively, in the second quarter of 2013.
Similar to earlier quarters, TDS Telecom saw ongoing gains in the residential side of its business with growing adoption of its TV and broadband services. During the quarter, it added 3,700 new broadband subscribers and 2,300 IPTV subscribers. The service provider also saw broadband ARPU rise slightly to $41.05 from $40.10.
To make its broadband offerings more compelling, the service provider began rolling out its 1 Gbps fiber to the home (FTTH) service in both New London and Hollis, N.H.. It also completed a number of broadband stimulus builds, including two in Maine and Mississippi that will extend services to a combined 2,850 households.
However, the telco continued to see the ongoing effect of wireline customers cutting ties with traditional phone service. During the quarter, it lost 2,600 residential voice lines, ending the quarter with a total of 346,100 lines.
TDS Telecom's parent company Telephone and Data Systems reported total operating revenues of $1.24 billion, up from $1.23 billion in the same period a year ago. Net loss attributable to TDS shareholders and related negative diluted earnings per share were $22 million and 20 cents, respectively, for the second quarter of 2014 compared with net income of $156.1 million and earnings per share of $1.42 in the second quarter of 2013.
The company has retained its revenue guidance for TDS Telecom in 2014 at $1.05 billion to $1.1 billion.
Shares of TDS were listed at $24.37, down 63 cents or 2.52 percent, in Friday morning trading on the New York Stock Exchange.
- see the earnings release
Special report: Wireline telecom earnings in the second quarter of 2014
TDS adds New London, N.H., to its 1 Gig fiber-based broadband list
TDS' Salem, Ky., broadband stimulus project extends service to 650 new homes
TDS puts finishing touches on Virginia broadband stimulus project
TDS extends broadband around Medford and Stetsonville, Wis., serving 1,400 residents
TDS Telecom taps Bandwidth to create national VoIP-based teleworker product