Broadband residential and business services drove growth in the third quarter for SureWest Communications (Nasdaq: SURW), the company announced Thursday, with a 9 percent year over year growth to $3.7 million in broadband revenues. Traditional fixed-line telecom revenues declined 11 percent, or $2.1 million, from the same period last year. Consolidated revenue rose 3 percent to $61.1 million.
"SureWest's strong third quarter results demonstrate the wisdom of our long-term strategy to invest in and grow our Broadband segment. Broadband Business revenues grew 20% compared to the year-ago quarter, and business services will continue to be meaningful to our growth strategy," said Steve Oldham, president and CEO, in a release. "Our Broadband Residential success is highlighted by a 4% increase in both ARPU and RGUs, sparked by customer demand for our new Advanced Digital TV product in the Sacramento market and continued success in migrating Telecom access lines to our Broadband Voice over IP product."
The layoff of 60 employees, as announced at the end of the second quarter, along with a reduction in professional fees, resulted in a savings of $1.5 million in labor expenses for the quarter. SureWest predicts annualized savings of $6 million-plus from the labor force reduction and plans other cost-saving measures.
- see the earnings release
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