Lumos sees growth in wireless backhaul, data initiatives, but 2014 revenue drops to $202M

Lumos reported that during the fourth quarter it continued to see growth in both fiber-to-the-cell (FTTC) and enterprise revenue, which grew 16 percent and 3 percent sequentially.

Fourth-quarter data segment revenue was $27.3 million, up nearly 3 percent sequentially, and made up 54 percent of total revenue as compared to 53 percent in the same period a year ago.

From an overall financial perspective, the company reported 2014 total revenue was $202 million, down 3 percent from the same period a year ago.

Once again wireless backhaul was a key factor in the company's earnings mix. The telco posted over 16 percent sequential growth in FTTC site revenue to $5.5 million while enterprise revenue grew 3 percent sequentially and more than 2 percent over 2013.

"I am pleased to announce that Lumos Networks achieved its 2014 targets of approximately $200 million in revenue and $90 million in adjusted EBITDA. We also hit our targets for 2014 FTTC revenue and surpassed our target for unique FTTC sites," said Tim Biltz, president and CEO of Lumos Networks, in the earnings release.

Biltz added that the company expects its "data segment revenue will grow approximately 9 percent to $116 million."

Throughout 2014, the service provider continued an aggressive buildout strategy to cell sites and buildings. During this period it added 375 new FTTC sites, 250 unique FTTC connections, 408 route miles of fiber and connected to an incremental 133 lit buildings and seven data centers.

Biltz said the company is on track to end 2015 with 1,700 FTTC connections, an increase of nearly 550, which would represent around $35 million in annualized FTTC revenue, once installed.

In addition, Lumos is accelerating the completion of its previously announced 665 fiber route mile network expansion in Richmond, Hampton Roads, Petersburg and Norfolk, Va., to the first half of 2016 from its original plan of the second half of 2016.

For the full year 2015, the telco has forecast revenue of about $202 million, adjusted EBITDA of approximately $92 million and capital expenditures of approximately $112 million.

Shares of Lumos were trading at $18.22, up 42 cents or 2.36 percent, in Thursday morning trading on the Nasdaq stock exchange.

For more:
- see the earnings release

Special report: Wireline telecom earnings in the fourth quarter of 2014

Related articles:
Lumos advances data center connections to 29 with Expedient's Pittsburgh deployment
Lumos' fiber-to-the-cell site connections rise, but Q3 revenues decline to $50.5M
Lumos' Pittsburgh NOC aims to improve fiber-to-the-cell traffic
Lumos fiber-enabled cell sites rise to 673 in Q2, reconfirms year-end target of 825 total sites
Lumos adds 15,000 buildings to 'near-net' list

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