Lumos’ FTTT, enterprise services make up 77% of Q2 revenue

Cellular antennas on tower
Image: Pixabay

Lumos' aggressive fiber-to-the-tower (FTTT) build along with an uptick in its enterprise unit drove the telco's combined second-quarter sales to 77% of its total data revenue mix, up from 71% in 2016.

Combined FTTT and enterprise revenue was $27.3 million, up more than 23% year over year. FTTT revenue for the quarter was $9.7 million, slightly up from $9.6 million in the first quarter.

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All of these results are a reflection of Lumos’ growing FTTT network build. As of the end of the quarter, Lumos had 1,307 unique towers and 1,672 total FTTT connections.

Besides FTTT sites, Lumos continued to increase all other key fiber expansion metrics, including fiber route miles, fiber markets, and on-net buildings.

The service provider added 76 route fiber miles and 11,746 fiber miles to end the quarter with a total of 10,983 and 515,362 miles, respectively. No less important are on-fiber locations. Lumos added 46 enterprise lit buildings in the second quarter to reach 2,171 total lit buildings, up 13% year-over-year

Here’s a breakdown of Lumos’ key metrics:

Enterprise Data: Driven by enterprise and FTTT sales, Lumos reported second quarter data revenues of $35.5 million, up 15% year-over-year.

Transport: Transport revenue was $8.2 million, down from $8.45 million in the previous quarter.

Residential and small business: As Lumos continued to scale its fiber-to-the-premises (FTTP) footprint, the service provider saw residential and small business revenues of $15.4 million, up sequentially from $15.2 million in the first quarter. During the quarter, Lumos added 85 new broadband connections and passed an additional 136 premises with fiber.

Likewise, Lumos reported RLEC access revenues of $5.3 million, up sequentially from $5.1 million in the previous quarter.

However, the service provider lost 1,786 competitive voice connections and 122 video subscribers. Per the industrywide trend, Lumos’ RLEC access lines declined to 22,071 from 22,483 in the previous quarter.

Financials:
Total revenue for the second quarter of 2017 was $56.4 million, up more than 7% from the prior year period. The company generated operating income of $9 million for the three months ended June 30, down from $9.7 million in the prior year.