Enventis, which is in the process of being acquired by fellow independent ILEC Consolidated Communications, saw that the fiber and data segment played a starring role in its portfolio, with revenues rising 5 percent year-over-year to $17.8 million.
Fiber and data segment revenue growth was driven by a 6 percent jump in retail revenue and a 4 percent increase in wholesale or carrier services revenue. Business revenue was $9.8 million while wholesale was $7.82 million. Operating and net income both rose 6 percent to $2.4 and $1.4 million, respectively.
While it will take time to evaluate the impact on business revenues, the service provider made its business service portfolio more compelling by launching its cloud-based SingleLink Unified Communications solution in June.
Alongside fiber and data, the telco saw significant gains in the equipment segment, which rose 15 percent year-over-year to $17.4 million. Equipment sales revenue was $14.1 million, an increase of 9 percent compared to the same period a year ago. Enventis said that "equipment revenue tends to fluctuate quarter to quarter based on sales and installation schedules."
Inside the equipment segment, support services revenues were $3.4 million, a 52 percent increase from the second quarter 2013. Equipment segment operating income was $1.7 million, an 84 percent increase year-over-year, while net income totaled $1 million, up 84 percent over the second quarter of 2013.
Similar to earlier quarters, telecom segment revenues declined 2 percent year-over-year to $14.4 million due to declines in legacy network access and local phone service revenue. Alternatively, broadband service revenue grew 4 percent, which helped to offset part of the telecom revenue decline. Digital TV subscribers were up 7 percent and DSL subscribers increased 3 percent and year-over-year.
Total company revenue was $49.7 million, up 5 percent year-over-year. However, net income declined 18 percent year-over-year to $1.9 million and was impacted by $911,000 of pre-tax costs related to its proposed merger agreement with Consolidated Communications.
Shares of Enventis closed at $16.51, up 3 cents or 0.18 percent, at the close of Wednesday trading on the Nasdaq stock exchange.
- see the earnings release
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