TDS Telecom's One Neck IT Solutions subsidiary, which provides managed IT services and colocation, reported that revenues rose 77 percent to $63.1 million, up year-over-year from $28 million the same period a year ago.
Within the OneNeck subsidiary, services revenues rose 24 percent to $27.3 million while equipment sales jumped to $35.7 million from $5.4 million and $22 million, respectively, in the first quarter of 2013.
LeRoy T. Carlson Jr., TDS president and CEO, said in the earnings release that the OneNeck IT Solutions' results were "driven by revenues from acquisitions and increased revenues for recurring services."
TDS Telecom also saw ongoing gains in the residential side of its business with growing adoption of its TV and broadband services. During the quarter, it added a total of 2,000 broadband and 2,100 IPTV subscribers. However, the telco continued to see the ongoing effect of wireline customers cutting ties with traditional phone service as it lost 3,400 traditional voice lines since the first quarter of 2013.
Carlson said that "TDS Telecom increased average revenue per customer for both residential and commercial wireline customers, with higher-tier TDS TV packages and faster broadband speeds, and new managedIP plans."
Overall TDS Telecom revenues were $262 million, up 21 percent from the first quarter of 2013.
In related news, TDS announced that it is enhancing its cable holdings by reaching a deal to acquire Oregon-based Bend Broadband for $261 million.
TDS Telecom's parent Telephone and Data Systems is maintaining its current operating revenue guidance for 2014 to be between $1.05 billion and $1.1 billion.
TDS reported operating revenues of $1.2 billion compared with $1.3 billion in the year earlier period. Net income attributable to TDS shareholders and related diluted earnings per share were $18.3 million and $0.16, respectively, for the first quarter of 2014, compared with $1.4 million and $0.01, respectively, in the same period a year ago.
Shares of TDS were listed at $27.94, up 44 cents or 1.60 percent, in Friday morning trading on the Nasdaq stock exchange.
- see the earnings release
Special report: Wireline telecom earnings in the first quarter of 2014
TDS completes parts of broadband stimulus projects in Kentucky, Mississippi and Tennessee
TDS' stimulus program will breathe broadband life into 27,000 rural households
TDS partially completes Mississippi broadband stimulus project, will bring service to 600 residents
TDS Telecom Q4 2013 jumps to $272M on increases in TV, managedIP service results