Cogent Communications (Nasdaq: CCOI) reported on Thursday that Q4 2012 service revenue rose 3.7 percent to $82.6 million as the amount of connections on its network increased to a total of 34,811 customers.
However, the impact of foreign exchange negatively impacted service revenue growth from 2011 to 2012 by $5.4 million.
The service provider reported that on-net service revenue was $60.4 million for the three months ended Dec. 31, 2012, up 3.9 percent over $58.1 million for the three months ended Sept. 30, 2012 and an increase of 1.4 percent over $59.5 million for the three months ended Dec. 31, 2011. On-net service is provided to customers that are located in buildings physically connected to Cogent's network.
Cogent added 35 new on-net buildings in Q4 2012, ending the quarter with a total of 1,867 on-net buildings, up from 1,832 buildings in Q3 2012.
For the year, on-net revenue declined 0.2 percent to $232.6 million due to the loss of an on-net customer in January 2012, which represented approximately 5.5% of total service revenue for 2011.
Off-net revenue was $21.6 million, up 3.5 percent over $20.9 million for the three months ended Sept. 30, 2012 and a 14.3 percent increase over $18.9 million for the three months ended Dec. 31, 2011. Overall 2012 off-net revenue was $81.9 million, an increase of 17.6 percent over the $69.6 million it reported in 2011. Cogent serves off-net customers in buildings that are connected to Cogent's network using the last mile facilities to connect the customers' premises to its network.
From a non-core perspective, Q4 2012 revenue was $0.6 million and $2.5 million for the year 2012, down from 13.7 percent from $2.8 million for the year 2011. Cogent's non-core services are legacy services, which it acquired after purchasing other service providers that it continues to support but does not actively sell.
- see the earnings release
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