Cincinnati Bell's (NYSE: CBB) ongoing bet on data centers continued to pay off in Q1 2011 as the service provider reported revenue of $361 million, an 11 percent increase over Q1 2010.
A big contributor to Q1 growth was a 117 percent, or $23 million, increase in data center colocation revenue.
At the same time, adjusted EBITDA of $142 million is the strongest quarterly performance since 2002 and is up $15 million or 12 percent both sequentially and year over year, with an increase of $13 million or 122 percent in Data Center Colocation Adjusted EBITDA.
Of course, there were inevitable losses in the wireline segment as voice revenues declined from $81.3 million in Q1 2010 to $73.2 million in Q1 2011. Year-over-year access line loss in the first quarter was 6.76 percent, the lowest it has reported in the last seven quarters.
However, those losses were offset with a rise in data, long distance and VoIP and video services delivered over its ongoing Fioptics Fiber to the Home (FTTH) network offering. During the quarter, Cincinnati Bell's wireline division added 2,500 Fioptics entertainment subscribers and 2,400 high-speed internet customers, a figure that includes both FTTH and DSL broadband subscriber. Overall, the service provider has 31,000 Fioptics entertainment and high-speed internet customers.
Looking ahead into the rest of 2011, Cincinnati Bell has forecast $1.4 billion in revenue.
- see the release
Earnings Summary: Wireline in the first quarter of 2011
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