Lumos is seeing the fruits of its fiber network expansion pay off again in the second quarter as the service provider saw its fiber to the cell (FTTC) and enterprise revenue rise.
During the quarter, the service provider’s total combined FTTC and enterprise revenue was $22 million, up 22 percent year-over-year.
On a combined basis, FTTC and enterprise made up 71 percent of total data revenue versus 64 percent in 2015. Lumos said 95 percent of the revenue was tied to Ethernet and other advanced fiber technologies
Within the FTTC segment, Lumos also wrapped an 822-mile fiber network to serve a 257 unique site contract, which is now fully operational. Since this network passes by local businesses, Lumos was able to increase enterprise sales momentum.
“During the second quarter of 2016, we saw increased Enterprise demand in our recently completed Network Expansion project into the markets of Richmond and Hampton Roads/Norfolk,” said Tim Biltz, CEO of Lumos, in an earnings release. “Based upon our recently completed extensive market analysis, we believe that these markets increase our total Enterprise addressable market by $221 million or approximately 67%.”
Network expansion was a key theme during the quarter. Lumos reached a total of 1,295 unique FTTC sites, up 33 percent year-over-year. It also had a total of 1,636 FTTC connections, up 25 percent year-over-year.
But FTTC was just one part of its expansion story. The telco also built out fiber to more buildings to satisfy its enterprise customer base, adding 110 lit buildings reach 1,922. This was a 22 percent year-over-year increase.
Lumos also continued to expand its overall fiber network, completing 251 fiber route miles in the quarter and adding a total of 885 miles in the last year.
As it expands its fiber network into more locations, the service provider is also extending its facilities to more area data centers. The telco now has 36 data centers connected to its fiber network, up from 31 since the first quarter of 2015.
The service provider said it is also moving closer to separate its legacy telecom assets to become a standalone fiber-based provider to businesses and carriers.
While it did not provide specific details of its plan, the company said it “expects to articulate a full set of separation plan alternatives” during its third quarter earnings call.
From an overall financial perspective, total revenue in the second quarter of 2016 was $52.4 million, up nearly from the same period a year ago.
Lumos reiterated its guidance for 2016 revenue to be in the range of $206 to $210 million.
Shares of Lumos were listed at $11.61, up 67 cents or 6.12 percent in early Wednesday afternoon trading on the Nasdaq stock exchange.
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