TDS Telecom, the wireline subsidiary of Telephone and Data Systems (NYSE: TDS), reported that first-quarter 2013 results rose to $217 million as it expanded its TDS TV service to more residential customers and new sales of its managedIP products to business customers.
Inside TDS Telecom, the ILEC segment grew 2 percent $141.5 million, while the CLEC division declined 3 percent to $42.6 million. Meanwhile, TDS' Hosted and Managed Solutions (HMS) unit, which offers a host of cloud, managed services and data center services to businesses, rose to $35.6 million.
Driven by continued sales of service bundles, TDS Telecom saw some slight gains in both broadband and IPTV, adding 200 and 1,100 customers, respectively.
"TDS Telecom continued to build its ILEC residential customer base with TDS TV and faster broadband speeds, and increased average revenue per ILEC residential connection," said LeRoy T. Carlson, Jr., TDS president and CEO, in the earnings release. "The company's residential strategy is to increase broadband and video penetration through service bundling."
HMS revenues continued to be driven by the ongoing rise in managedIP connections. During the quarter it added 1,200 managedIP connections to end the quarter with a total of 18,400 connections
In an effort to attract more managedIP customers, it announced a new promotion this week offering customers the opportunity to purchase the VVX 500 business media phone for only a penny when they upgrade to the managedIP Hosted service.
"Hosted and managed services revenues were driven primarily by a 2012 acquisition, as the HMS business continues to integrate its offerings to provide comprehensive, end-to-end IT solutions to mid-market customers," Carlson said.
The service provider expanded its addressable market for its managedIP product when it announced an agreement to acquire cable operator Baja Broadband in February.
TDS Telecom's parent Telephone and Data Systems, Inc. reported operating revenues of $1.31 billion, up from $1.30 billion in Q1 2012.
Shares of TDS were trading at $22.54, down 0.13, or 0.57 percent, in late morning trading on the New York Stock Exchange.
For more:
- see the earnings release
Earnings roundup: Wireline telecom earnings in the first quarter of 2013
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