Hawaiian Telcom Second Quarter Revenues Up 1%
By Sonia Isotov
Today, Hawaii Telcom reported second quarter revenues of $100.7 million, which is an increase of 1% from $99.6 million in the same period a year ago.
In the second quarter reporting period, adjusted EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, grew 6% to $31.8 million from $30.1 million a year ago. EBITDA is a measurement of the company’s operating cash-flow, especially those with large amounts of fixed assets.
Also of significance this quarter was the awarding of a video franchise to Hawaiian Telcom.
“Hawaiian Telcom was awarded its video franchise at the end of the second quarter and we have since begun a staged launch of our TV service on Oahu,” said Eric K. Yeaman, Hawaiian Telcom’s president and CEO in a written statement.
Hawaiian Telcom also generated net income of $6.7 million, or $0.61 per diluted share. This excluded a one-time charges totaling approximately $2.2 million related to a reduction-in-force and lease termination costs associated with the closure of its remaining retail stores.
There was continued improvement in year-over-year access line loss to 5.3%, compared to 7.4% in second quarter 2010, and 8.3% in second quarter 2009.
Approximately 4,500 high-speed internet subscribers were added in the second quarter, which nearly doubled the year over year growth.
2,100 residential packages were added which drove residential bundle penetration to 38% in Hawaii, up from 36% in the prior quarter.
“In the business market, we continue to experience solid growth in our IP-based services. In the second quarter we launched several new bundles tailored to small and medium-sized businesses that leverage these services and strengthen our position as Hawaii’s leading end-to-end solutions provider. In addition, we continue to grow our wholesale business primarily through the deployment of fiber facilities to wireless cell sites to support the increased demand for network capacity from national wireless carriers as a result of the significant growth in wireless data usage by consumers and businesses,” Yeaman added.