SureWest Communications, which serves the Sacramento, California region, reported strong broadband growth, with broadband revenues rising 30% yoy to $13.0 million.
Surewest said its broadband revenue growth was fueled by a 30% increase in subscribers on the fiber-to-the-premise network to more than 19,000 subscribers, and a 36% increase in marketable homes to 84,500 at September 30, 2005. In addition, DSL subscribers increased nearly 21% to more than 26,500 subscribers, including more than 2,000 video subscribers on the IPTV platform, more than double the number at the end of the third quarter of 2004.
Access line losses in the Telecom segment slowed in the third quarter of 2005 compared to the third quarter of 2004, indicative of a leveling off of access line erosion in the ILEC market during this period. Consolidated access lines experienced a gain of just less than 1%, resulting from strong access line additions in the CLEC market. Long distance lines remain strong, with a penetration rate under 40% and an 11% increase in presubscribed customer lines over the year earlier period.
Telecom segment revenues declined slightly to $34.3 million in the third quarter of 2005 compared to the third quarter of 2004, while operating expenses exclusive of depreciation and amortization dropped by 9% over the same period.
Wireless segment third quarter revenues increased 9% to $8.8 million from $8.1 million in 2004, while total operating expenses increased only by a negligible amount.
Overall, Surewest’s consolidated operating revenues of $56.1 million represent a 5% increase over the same period a year ago, while operating expenses exclusive of depreciation and amortization dropped 10% compared to the third quarter of 2004. Income from operations rose to $4.8 million in the third quarter of 2005, from a loss of $1.5 million in the third quarter of 2004. Net income for the quarter totaled $2.0 million, or $0.13 per share, up from a loss of $1.6 million or an $0.11 loss per share in the third quarter of 2004.
http://www.surewest.com
