Cincinnati Bell (NYSE: CBB) reported on Wednesday that fourth-quarter wireline revenues were flat year-over-year at $182 million compared to Q4 2011 as its next-gen Fioptics, strategic business data and VoIP continued grow amidst legacy voice service losses.
Wireline revenues for the full year 2012 likewise declined to $731 million, down from $732 million in 2011.
Despite the slight revenue decline, Cincinnati Bell made progress in expanding the reach of its Fioptics broadband service line to more homes and businesses.
During Q4 2012, the service provider signed up an additional 4,000 Fioptics entertainment customers and an additional 5,000 Fioptics high-speed internet subscribers, increasing the total number of such subscribers to 55,000 and 57,000, respectively. As of the end of the quarter, it passed a total of 205,000 homes and businesses with Fioptics, which it says represents about 26 percent of the Greater Cincinnati market.
Migration to the higher speed Fioptics service comes at a time when, like other telcos, Cincinnati Bell continues to lose traditional DSL subscribers. At the end of Q4, the telco said it had a total of 259,000 broadband subscribers, up from 257,000 at the end of 2011, "as the increase in Fioptics subscribers continues to more than offset the decrease in DSL high-speed internet subscribers."
The other key driver in Cincinnati Bell's overall revenue mix was CyrusOne (Nasdaq: CONE), which reported $58 million, up 18 percent over Q4 2011, and annual revenues of $221 million, up 20 percent compared to 2011.
Last month, CyrusOne went public on the Nasdaq stock exchange. Cincinnati Bell continues to hold a majority stake in CyrusOne.
CyrusOne saw significant growth during the quarter as it added 36,000 square feet of new data center space during the quarter and 199,000 square feet for the full year, increasing total capacity to 932,000 square feet at the end of 2012. It also sold 41,000 square feet of new space during the fourth quarter, and 92,000 square feet for the full year.
Overall, Cincinnati Bell's revenues for the year 2012 were $1.5 billion, up 1 percent over 2011, while Q4 2012 revenue was $375 million, up $9 million from the same period in 2011.
Looking forward, Cincinnati Bell has forecast 2013 revenue of $1.2 billion and adjusted EBITDA of about $390 million.
Shares of Cincinnati Bell were at $3.57, down 0.59, or 14.10 percent, on the New York Stock Exchange in Wednesday morning trading.
- see the earnings release
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