tw telecom to repurchase $300M of its shares

tw telecom's (Nasdaq: TWTC) board of directors have approved the competitive provider's share repurchase plan of up to $300 million.  

"Our decision to initiate this larger, multi-year share repurchase program reflects our confidence in our strong cash flow generation" said Larissa Herda, tw telecom chairman, CEO and president in a statement. "We have demonstrated our ability to accelerate top line growth, deliver leading M-EBITDA margins, and generate strong cash flow."

The service provider plans to continue to follow its path of success based capital program and investing in products and services such as Ethernet access to VPNs that help it stand out from other competitors.  

In June 2010, tw telecom initiated its first stock repurchase program where it has repurchased $100 million of shares, including $50 million in both 2010 and 2011.

Reflecting its closing price on Nov. 18, 2011, the repurchase plan equates to approximately 12 percent of the company's total shares currently outstanding as of Sept. 30, 2011. It will buy shares either in the open market or through private transactions.

This latest initiative reflects its bets on Ethernet and other fiber-based products continue to pay off.

During Q3 2011, for example, the service provider reported that data and Internet revenue grew 4.1 percent sequentially and 18.6 percent year-over-year. This growth trend was driven by a 27.5 percent year-over-year increase in strategic Ethernet and VPN-based products.

For more:
- see the release

Earnings summary: Wireline in the third quarter 2011

Related articles:
tw telecom: Healthy Ethernet, VPN growth drives Q3 revenue up to $344.5M
tw telecom's Ethernet, data networking bets pay off in Q3
tw telecom Q4 revenue increase driven by increased business services sales
tw telecom: Enterprise technology migrations, wireless backhaul to drive new revenue

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