Cincinnati Bell says IPTV growth helped its bottom line in Q3

Cincinnati Bell (NYSE: CBB), which this year rolled out an IPTV service, said the new businesses helped its wireline bottom line in the third quarter as well as the continued expansion of its Fioptics FTTH initiative.

The company said revenues rose 5 percent to $369 million from a year ago, and net income was up 21 percent to $18 million, or 7 cents per share diluted.

Cincinnati Bell said its push into IT services and hardware sales also was a major growth factor, as they increased 26 percent; Data Center Colocation revenue was up 18 percent.

Its wireline business added 4,000 Fioptics entertainment subscribers, bringing the total to 38,000 customers; because of demand for the service, the company passed 25,000 additional homes and businesses with Fioptics during the quarter, bringing the total number of units passed to 115,000. It anticipates passing 25,000 additional units during the fourth quarter.

"We delivered another strong performance in the third quarter, building on the solid results that we generated during the first half of the year," said Jack Cassidy, president and chief executive.

Wireline revenue fell 1 percent to $183 million. On-going access line losses continue to negatively impact Wireline's voice revenues. Growth from the entertainment, data and VoIP products, combined with the company's continuing cost reductions, helped Wireline maintain its strong Adjusted EBITDA margin.

"In the third quarter, we delivered our highest revenue in more than eight years and continued to see strong growth and high utilization in our data center colocation segment. The expansion of our data center operations continues, and we expect to finish construction on an additional 30,000 square feet of data center space in the fourth quarter," said Kurt Freyberger, chief financial officer. "We were also pleased to sell our non-core home security business during the third quarter for proceeds of more than $10 million and to complete a shareholder-friendly buyback of our stock for $10 million."

For more:
- see this release

Related article:
Cincinnati Bell plans IPTV launch

WHITEPAPER

How To Lower the Cost of Ownership of Your Cable Access Network

This white paper presents a cost analysis of a virtualized cable modem termination system (CMTS) deployed in a distributed access architecture (DAA). Learn how to eliminate traditional CMTS constraints, efficiently enhance your network performance and more.

Suggested Articles

Comcast is planning new data caps and video service price increases for its subscribers in 2021.

The Apple TV remote is an often reviled peripheral device. Universal Electronics has taken it upon itself to create a different option.

Charter said it’s building an IP video aggregation platform complete with new hardware.