tw telecom (Nasdaq: TWTC) continued to ride a wave of enterprise services growth in Q1 2011 with revenue rising to $332.5 million, up 6.9 percent from $311.2 million in Q1 2010.
Driven primarily by data and Internet revenues, tw telecom reported an 8.1 percent, or $19 million increase, in enterprise revenue.
"Revenue grew significantly, particularly in a quarter in which we've historically experienced seasonally lower growth," said Mark Peters, tw telecom's Executive Vice President and Chief Financial Officer in the earnings release. "Our growth reflected the impact of our strategic investments in products, systems, capabilities and network reach. These investments helped to drive an increase in our 2010 bookings, which contributed to revenue growth this quarter."
While not a major piece of their revenue mix, tw telecom also benefited from incremental increase in wholesale revenue. During the quarter, tw telecom reported a $3 million rise in wholesale revenue, a factor it attributes mainly to selling wireless backhaul and Ethernet services to other wireline service providers.
From a product perspective, the strongest performer in its Q1 2011 results were data and Internet services which grew 17.9 percent due to continued Ethernet and IP-based product sales. Overall data and Internet services represented 46 percent of revenue for the quarter, up from 41 percent in 2010.
As seen by all service providers, tw telecom's voice service revenue declined 1.2 percent, a factor it attributes to churn and a reduction in usage based services.
However, network services remained flat, reflecting growth in high capacity and collocation services, offset by customer churn.
Looking forward, tw telecom plans to stick to its success-based and strategic investing with 2011 capex investments to be at the high end of its guidance range of $310 to $330 million.
- see the release
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