TDS Telecom is seeing its own IP transition efforts come alive as the telco reported that it grew TDS TV and commercial managedIP connection revenue, a factor that enabled it to ease the pain of ongoing voice and wholesale revenue declines.
Overall TDS Telecom's operating revenues were $273.2 million, up 16 percent year-over-year from $234.5 million in 2013.
In the residential segment, the service provider added 1,100 broadband subscribers and 2,500 IPTV subscribers, ending the period with a total of 231,700 and 20,700 subscribers, respectively. However, it lost 5,800 traditional POTS line customers.
Another key highlight during the third quarter was that TDS Telecom said it would bring its 1 Gbps fiber-to-the-home service to an additional four southern Wisconsin towns, building on the momentum it began in New Hampshire.
It also saw gains on the cable side. During the quarter, TDS added 39,400 video and 43,200 broadband subscribers after completing its acquisition of cable operator BendBroadband.
"TDS Telecom grew revenues from residential TDS TV and broadband services and from commercial managedIP connections, which helped offset declines in voice and wholesale revenues," said LeRoy T. Carlson, Jr., TDS president and CEO, in the earnings release. "We are integrating BendBroadband and are focused on increasing video and broadband penetration in our cable businesses."
On the commercial side, the key story was managedIP, where it added 4,400 new connections. Like the residential segment, TDS Telecom's commercial business reported it lost 6,900 voice subscribers and 700 broadband subscribers.
Carlson said that TDS will "continue to focus on increasing the strategic recurring revenues from hosted and managed services at OneNeck IT Solutions."
Despite growth in residential broadband, IPTV and managed services overall wireline operating revenues declined 2 percent year-over-year to $177.6 million, down from $181 million in the same period a year ago. Residential revenues declined to $73.9 million, while wholesale revenues declined to $46.5 million from $49.8 million.
The service provider also raised its 2014 revenue outlook for TDS Telecom from $1.05 billion to $1.1 billion to $1.07 billion to $1.13 billion.
Shares of TDS were listed at $24.99, up 6 cents or 0.24 percent, in Friday morning trading on the Nasdaq stock exchange.
- see the earnings release
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