Independent telco SureWest Communications reported its second quarter earnings, highlighted by net income increase from $1.5 million in the same quarter last year to $20.9 million this year. However, the telco saw a $19 million benefit from the sale of its wireless operation to Verizon at the beginning of this year. Revenue rose 36%, sparked by a broadband revenue increase of 11% to $35.6 million.
The company said that success in migrating customers from traditional landline to VoIP helped offset overall voice losses. About 1,400 of SureWest's 3,900 sequential voice line losses were actually customer who moved over to the telco's VoIP service.
Meanwhile, the company's earlier decision to eliminate its dividend is having a predictable effect among shareholders. One local shareholder of the Roseville, Calif. based company has started www.surewestdividends.com to air criticism of the decision, but SureWest is now going after the rogue, saying he used "the SureWest logo on the site without authorization and that the domain address implied the site is a SureWest entity," according to a story at The Sacramento Bee.
- see this press release
- read this story at The Sacramento Bee