Hawaiian Telcom Business, TV Sales Drive Positive Quarter
By Sonia Isotov
Hawaiian Telcom business revenue increased 5.4% and TV subscribers increased 9% year-over-year driving positive first quarter 2012 results.
Business data revenue, inclusive of switched Ethernet, IP-VPN and dedicated Internet access, drove the increase as well, up 9% from the same period a year ago driven by demand for IP-based data services.
“We continue to witness strong market demand for IP-based services as businesses look for ways to control costs and enhance productivity,” said Eric K. Yeaman, Hawaiian Telcom’s president and chief executive officer, in a written statement.
Hawaiian Telcom TV subscriber penetration increased to over 9% of the 41,200 households enabled, up from nearly 6% of the 27,400 households enabled at year-end.
“Demand for Hawaiian Telcom TV remained strong. The number of subscribers more than doubled to approximately 3,900 at the end of the first quarter and we enabled an additional 13,800 homes in the quarter increasing our footprint to over 41,000 households,” added Yeaman.
The decrease in revenue was attributed primarily the loss of access lines, but largely offset by increased equipment sales and growth from video, business data and high-speed internet services (HSI).
Consumer HSI subscribers increased 2.7% year-over-year to 85,500, driven by video bundle sales and enhancements to the broadband network.
Excluding a one-time $5.1 million loss on early extinguishment of debt in connection with the successful refinancing effort completed in the first quarter of 2012, the company generated net income of $5.3 million compared to $5.5 million in the quarter ending December 2011.
Overall, Hawaiian Telcom reported revenues reached $97.6 million, a 1% decrease from a year ago, when it was $98.5 million for the first quarter.