The company formerly known as Time Warner Telecom announced $294.6 million in revenue and $5 million in net income for the fourth quarter of 2008. The company had $1.15 billion in revenue, $399 million in modified EBITDA and net income of $8.5 million in 2008.
Highlights for the year included: total revenue growth of 7 percent year over year; enterprise revenue growth of 12 percent to $840.5 million; an increase of M-EBITDA of 18 percent ($60 million) over 2007; levered free cash flow of 4 percent ($50.9 million); and, ending the year with $352.2 million in cash and equivalents.
Looking forward, tw telecom officials said they expect to deliver positive levered free cash flow for 2009, and the company has no significant debt maturities until 2013, plus an unused revolver (line of credit), so there's a great deal of flexibility to make the "right" investments for the business.
Revenue churn is up a bit (1.2 percent as compared to 1 percent for the same quarter last year), due to a combination of the impacts of the economy and customers tw telecom has acquired. Acquired customers are buying less complex services. Customer churn is a mixed bag; it was at 1.3 percent in Q408, down from 1.5 percent last quarter, but up from 1 percent for the same quarter last year. The majority of the churn is resulting from small acquired customers.
Digging into the fine print, there's a 23 percent increase for data and Internet service, based upon continued success with Ethernet and IP-based product sales. Voice services are down 2 percent, due to churn in the acquired customer base. There's also a 2 percent decrease for network services, due to customer disconnects and repricing of contracts.
- tw telecom's press release in hated PDF format.
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