tw telecom's Q1 revenues boosted by data sales

Buoyed by strong sales of data and Internet services, tw telecom's (Nasdaq: TWTC) Q1 revenue rose to $311.2 million, a 5 percent increase from $297.6 million in Q1 09.

A key contributor to tw telecom's Q1 revenue growth was 15 percent increase in data and Internet services including its Ethernet and IP-based products. As of the end of Q1, tw telecom had over 27,000 route fiber miles (including more than 20,000 metro miles) and 10,647 on-net buildings.

Of course, tw telecom was not immune to losses. During the quarter, the service provider reported a 5 percent decrease in network services, a factor it attributes to sales that "were outpaced by churn and repricing for contract renewals."

At the same time, tw telecom was successful in minimizing customer churn. With about 28,000 on its roster as of the end of March, tw telecom was able to slightly reduce churn from 1.2 in Q4 to 1.1 percent in Q1. tw telecom explained that the majority of customer churn came from smaller business customers, a trend it expects to continue.

"Our revenue growth this quarter was benefited by a substantial decline in revenue churn," said Mark Peters, tw telecom's Executive Vice President and Chief Financial Officer in the earnings release. "While it's too early to determine if these favorable churn results are sustainable, we believe our focus on customer satisfaction, ongoing process improvements and targeted churn initiatives, will continue to benefit revenue."

For more:
- see the earnings release here

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