SureWest Communications (Nasdaq: SURW) took advantage of its established broadband networks to continue reducing capital expenditures in the second quarter of 2010, a factor that president and CEO Steve Oldham cited in reporting a 7 percent year-over-year growth in its broadband segment.
The carrier's telecom segment did not fare so well, falling 17 percent compared to the same period last year. However, SureWest held the line for the first half of 2010 with telecom revenue coming in just 1 percent below Q1.
"Our second quarter results demonstrated our ability to create growth in both business and residential markets with reduced year-to-date capital expenditures. We remain focused on growing revenues, margins and free cash flow through increases in our commercial service offerings and residential triple-play growth while continuing our cost-saving initiatives," Oldham said in a prepared release.
He added, "Expanding our fiber-to-the-home network over the last five years has provided us a significant performance advantage over our competitors. We have a large inventory of marketable homes and therefore do not require further capital expenditures to extend the network. "
Not mentioned were other cost-cutting measures SureWest--like many cash-strapped telcos--took to maintain its outlook, including laying off 60 employees in the Sacramento and Kansas City markets.
For more:
- see the release here
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