Cincinnati Bell's (NYSE: CBB) Q2 wireline earnings reflect the growing pains that come with expanding next-gen services with declines in legacy voice and data services. However, Cincinnati Bell's bet on Fiber to the Home (FTTH) helped the incumbent carrier offset losses in its legacy wireline voice and DSL service segments.
Reflecting a common trend among all incumbent U.S. service providers, Cincinnati Bell lost another 8,600 primary and 1,000 secondary lines in its incumbent Cincinnati territory, a slight increase over the 8,000 primary and 900 secondary lines it lost in Q1 2010 but down from the 9,400 and 1,000 lines it lost in Q2 2009.
The service provider saw similar declines in its Dayton and southern Indiana CLEC areas where it lost 400 primary lines, but no secondary line losses.
Broadband service revenue was overall a mixed bag. During the quarter, Cincinnati Bell lost 1,400 DSL subscribers. The DSL losses, however, were offset with the addition of 2,800 new subscribers signed up for its Fiber to the Home (FTTH)-based Fioptics. Still, the latest Fioptics additions pale in comparison to the 10,200 that signed up for the new service shortly after it debuted in Q4 09. As of the end of Q2 2010, the service provider's FTTH network passed 55,000 homes up from 41,000 at the end of 2009.
On the video side, Cincinnati Bell saw some minor gains in Fioptics video with the addition of 3,000 Fioptics entertainment subscribers.
From a financial perspective, Cincinnati Bell's overall revenue was $330 million, up three percent over Q2 2009, while net income was $10 million. Wireline segment quarterly revenue was $187 million, down from $5 million in 2009.
"We are pleased with our second quarter financial results, which demonstrate the impact of revenue growth and vigilant cost management," said Gary Wojtaszek, chief financial officer in the earnings release.
Cincinnati Bell enhances its data center power by acquiring CyrusOne
Cincinnati Bell sees data centers, FTTX as its growth engines
Cincinnati Bell lights up Cincinnati community square with fiber
Cincinnati Bell takes a hit in Q4 09
Cincinnati Bell to axe more jobs in 2010