Cincinnati Bell (NYSE: CBB) Q3 earnings once again reflect the fact that its push to become a larger player in the managed services and broadband as its future wireline growth engines is paying off.
Click here for details of Cincinnati Bell's Q3 2011 results.
During the three months ended Sept. 30, the service provider reported net income of $17.6 million, or 7 cents a share, a 21 percent increase from the $14.5 million, or 6 cents a share, it reported in Q3 2010.
Likewise, operating revenue was $86 million, up from $83 million a year ago, a figure that included an $8 million one-time gain from the sale of its home security business.
One of the big contributors to the positive results was a 26 percent increase in IT services and hardware sales, and an 18 percent increase in data center colocation revenue.
On the traditional wireline side, the service provider saw its share of ups and downs with overall wireline revenue declining to $183 million. Local access lines declined from 650,600 in Q2 to 635,300 in Q3.
Despite the overall wireline losses, Cincinnati Bell continues to find new subscribers for its Fioptics entertainment service, adding 4,000 customers during the quarter. Buoyed by the debut of its IPTV service, the telco passed 25,000 additional homes and businesses with Fioptics during the quarter, bringing the total number of units passed to 115,000. By the end of Q4 2011, wireline expects to pass about 25,000 additional units.
For the year 2011, the telco reconfirmed its guidance of $1.4 billion in revenue and adjusted EBITDA of $545 million.
- see the earnings release
- here's FierceIPTV's take
- Cincinnati.com has this article
Earnings summary: Wireline in the third quarter 2011
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Cincinnati Bell's Q2 results get boost from data center service gains