TDS Telecom revenues rise to $210.8M with increases in broadband, managed services

TDS Telecom, the wireline subsidiary of Telephone and Data Systems (NYSE: TDS), once again saw the benefits of emphasizing emerging services such as broadband, video and managed services.

TDS Telecom Q3 2011 results

Click here for details from TDS Telecom's Q3 2011 earnings results.

During the quarter, TDS Telecom reported that operating revenues increased 4 percent to $210.8 million, while operating income rose 2 percent to $25.2 million.

ILEC revenue grew 6.9 percent, a factor it attributes to growth in its Hosted Managed Services (HMS) and high speed data, which offset declines in traditional voice services and network access.

However, CLEC revenue was down 4.3 percent as commercial service revenues remained flat and the number of CLEC residential customers declined because of its decision to no longer target residential customers.

Here's a breakdown of their key metrics:

  • Wireline voice: As expected, TDS's traditional landline voice subscribers declined 5.2 percent. To help offset landline voice loss, TDS has been offering its star voice package to subscribers. As of the end of the quarter, TDS Telecom had 490,200 access lines.
  • Broadband services: Buoyed by its drive to introduce higher speed VDSL2-based services, TDS Telecom reported that high speed data subscribers grew 6 percent year-on-year. Since last year, the number of Internet subscribers taking speeds of 5 Mbps or greater has doubled to 55 percent and 17 percent are taking greater than 10 Mbps speeds. Overall residential DSL penetration reached 61 percent of its primary residential lines and DSL ARPU remained at about $37 with the migration to higher speed services offsetting competitive pricing pressures from cable operators.
  • Video services: From a bundled perspective, ILEC triple play penetration via its relationship with satellite video provider Dish Network increased to 28.5 percent from 24.6 percent. In Q3, TDS Telecom added 2,600 net triple play subscribers, bringing customer penetration to 28 percent.
  • Business, managed services: As it continues to emphasize its Managed IP service set, one that it has bolstered via its acquisitions of VISI, TEAM and OneNeck IT, HMS (ILEC and CLEC) grew its managedIP station customer base 12 percent to 39,400 customers.

"TDS Telecom had a solid quarter, increasing operating revenues and operating income. ILEC data revenues continued to increase, due mainly to growth in hosted and managed services revenues and high-speed data customers," said LeRoy T. Carlson, Jr., TDS president and CEO. "TDS Telecom also continued to add managedIP stations in its commercial business."

Overall, TDS Telecom's parent company Telephone and Data Systems, Inc. reported over $1.3 billion in million Q3 2011 revenues, up 5 percent from $1.27 billion in the same period in 2010.

Net income and related diluted earnings per share were $71.3 million and $0.68, respectively, for Q3 2011, compared to $41.4 million and $0.39, respectively, compared to Q3 2010.

For more:
- see the release

Earnings summary: Wireline in the third quarter 2011

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