Cincinnati Bell's (NYSE: CBB) Q4 earnings report was a bit of a mixed bag as revenues rose amidst a net loss from debt refinancing charges.
Cincinnati Bell reported a net loss for the three months ended Dec. 31 of $19 million versus a $6.8 million, or 2 cents a share, profit in Q4 2009. The losses were attributed to two special items including a $36 million loss on the extinguishment of a term loan due in 2017 and extending debt maturities to 2020 in addition to $9 million charge related to restructuring costs related to layoffs it needed to make to reduce costs due to declining revenues in its traditional wireline business.
On the brighter side, the service provider's revenues were up 5 percent to $363 million from $345 million in Q4 2009.
In the wireline segment, Q4 2010 revenue was $183 million, down $7 million, or 3 percent, from Q4 2009. For 2010, wireline revenue was $743 million, down $21 million or 3 percent from 2009 due primarily to expected traditional access line losses.
The service provider, however, continued to grow future strategic services such as its Fiber to the Home (FTTH)-based Fioptics service. As of the end of the quarter, the Fioptics network past 30,000 homes in 2010, bringing total homes passed to 79,000. Meanwhile, the wireline division added 8,500 new broadband customers, which includes its Fioptics and DSL products.
What is contributing to Cincinnati Bell's overall growth is its CyrusOne data center division. During the quarter, data center revenue increased $22 million to $41 million and increased by $54 million for the year as Texas-based CyrusOne signed new contracts with customers for 41,000 additional square feet.
Jack Cassidy, Cincinnati Bell's president and CEO, said in the earnings release that "2010 marked a pivotal point in our company history as we embarked on a strategy to become the preferred data center colocation provider to the Fortune 1000 with our acquisition of CyrusOne. We look forward to the growth in 2011 and beyond that this strategy will bring to our shareholders."
- see the earnings release
- Cincinnati.com has this article
- here's FierceTelecom's Q4 earnings summary
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