Profit in the second quarter just ended was $959,000, compared with $20.9 million in Q2 2008, during which SureWest realized a gain of $19 million for a sale of certain wireless assets.
Even so, revenue increased 2 percent to $60.9 million, which the company attributed to 14 percent growth in broadband revenue growth. The company also continued to benefit from cost-saving measures, including reducing occupied office space and another layoff, this one of 3 percent of the company’s employees.
SureWest’s headcount is now 897.
Source: SureWest Communications
Consolidated capital expenditures totaled $11.1 million for the second quarter and $29.5 million year-to-date; a decrease of 56 percent year-over-year and 39 percent sequentially as a result of reduced expenditures for network expansion, completed after the company passed 8,100 additional advanced fiber homes.
SureWest said the first 15,000 homes receiving its extended video service will be delivered in December 2009, and the second phase of homes will become available by the second quarter of 2010. SureWest’s projected 2009 capital expenditure remains $55- to $60 million.
Steve Oldham, SureWest’s president and CEO, said: “We are pleased to report solid revenue and EBITDA results. Strong free cash flow allowed us to pay down debt and increase cash reserves, enhancing our financial flexibility. Significant growth in average revenue per customer highlights our strategy of offering superior services to high-value customers. We also experienced a considerable increase in business services revenue, particularly in the Kansas City market.”
Oldham added: “In recent years, SureWest has committed significant new capital to expand our state-of-the-art fiber network with the long-term goal of growing our subscriber base. Having completed our 2009 network build, we maintain our ability to grow through a number of avenues, most impressive of which is the planned integration of Microsoft Mediaroom into our Sacramento IPTV product this December.”