SureWest Communications reported a 119 percent year-over-year increase in residential revenue-generation units (RGUs) in its first quarter of 2008, ended March 31.
Video and voice RGUs both increased 180 percent in the first quarter, compared with the prior year’s quarter. During the quarter, SureWest enhanced its digital video recorder (DVR) feature package, and the company said it expects to add more than 15 additional high-definition (HD) channels during the second quarter.
Data RGUs increased 74 percent year-over-year. The company continues to enhance its data service with new offerings such as Wi-Fi Hotspots and a national online remote home monitoring product (story here). Total broadband revenues grew 64 percent in the quarter, compared with the first quarter of 2007. And broadband residential revenues increased 66 percent year-over-year.
Steve Oldham, SureWest’s president and CEO, said, “For the first time ever, broadband segment revenues surpassed telecom segment revenues this quarter due to the rapid growth of our residential triple-play services and the successful integration of the Kansas City market.”
Telecom segment revenues declined 7 percent year-over-year, resulting from a 14 percent decline in telecom voice RGUs.
Consolidated revenues from continuing operations increased 20 percent year-over-year to total $51.6 million. Consolidated net income decreased from $61.2 million in Q1 2007 to $283,000 in Q1 2008 due to the sale of SureWest Directories in the first quarter of 2007.
During the first quarter, SureWest announced the sale of the operating assets of its wireless business as part of the company’s strategy to focus on its growing broadband business.
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