HickoryTech (Nasdaq: HTCO) reported in Q2 2013 that its fiber and data segment was the star performer of its portfolio, rising 11 percent year-over-year to $17 million. The telco attributes the revenue rise to an increase in wholesale and retail business sales followng its acquisition of Idea One, which expanded its fiber network.
One of the key elements of its wholesale business is wireless backhaul. Delivering fiber-based services to four wireless operators in its territory, the telco has connected 60 towers to its fiber network with plans to complete the build out of 40 more to end the year with a total of 100.
HickoryTech saw a rise in its equipment and support services revenue by 20 and 4 percent, respectively, year-over-year to $12.9 and $2.2 million. Meanwhile, its equipment segment revenue was $934,000, up 134 percent over the same period a year ago.
However, the telecom segment once again reported that revenues were down 3 percent from Q2 2012 as local voice service and network access declined 14 and 6 percent to $2.8 and $4.4 million. Likewise, long-distance service revenues declined 8 percent to $584,000.
One bright spot in the telecom segment was broadband, where revenues rose 5 percent to $5.2 million. During the quarter, the service provider's DSL subscriber base rose 6 percent while digital TV subscribers rose 9 percent. It ended the quarter with a total of 20,538 and 11,001 DSL and digital TV subscribers.
Total revenue for the quarter rose 7 percent year-over-year to $47.1 million.
The service provider has confirmed its previous fiscal 2013 outlook that revenue will be within a range of a 2 percent decline to a 3 percent increase when compared to 2012 revenue. It added that growth in business services revenue will offset the ongoing decline of legacy telecom services.
Shares of HickoryTech were listed at $11.39, up 3 cents, or 0.26 percent at the end of trading Monday on the Nasdaq stock exchange.
- see the earnings release
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