tw telecom reported that first-quarter 2014 revenue rose 7.1 percent year-over-year to $408.3 million due to ongoing growth in its enterprise and data and Internet segments.
During the quarter, enterprise revenue grew 2.3 percent sequentially and 9.2 percent, or $26.1 million, year-over-year, while data and Internet revenue grew 3.6 percent sequentially and 15.1 percent year-over-year.
Data and Internet services revenue rose 15.1 percent, which was driven by an increase in strategic Ethernet and VPN based products and other services, partially offset by churn and repricing. These services now represent 60 percent of total revenue, up from 56 percent in the same period a year ago.
Voice service revenues also rose 1.8 percent, primarily from converged and other voice solutions and an increase in usage based services, partially offset by churn. Voice services revenue represented 19 percent of total revenue for the quarter compared to 20 percent a year ago.
It also saw gains in its carrier services division where revenues rose by $0.6 million, which it said reflects growth in Ethernet services, offset by churn and re-pricing for contract renewals, primarily in network services.
However, network services declined 10.1 percent due to the impact of churn and re-pricing, largely from service provider customers. Network services revenue now represents 14 percent of total revenue for the quarter compared to 17 percent a year ago, in part reflecting the transition from network services to Ethernet-based technologies.
Although it will take time to assess the impact of its plans, tw telecom has put together a foundation to create further growth with a strategic market expansion to extend its metro fiber footprint into five new high demand markets and accelerate the density of its metro fiber footprint in a third of its existing markets during the fourth quarter.
Shares of tw telecom were listed at $31.12, up 12 cents or 0.39 percent, in Monday morning trading on the Nasdaq stock exchange.
- see the earnings release
Special report: Wireline telecom earnings in the first quarter of 2014
tw telecom puts more fiber into its Nashville network
tw telecom, DuPont Fabros provide direct connection to Amazon Web Services
tw telecom lights up service in Salt Lake Valley area
tw telecom expands fiber networks in Memphis, Orange County