Telecom Lead Europe: tw telecom, a provider of managed
services, including Business Ethernet, converged and IP VPN solutions to
enterprises across the U.S. and to their global locations, has
posted $358.9 million of revenue for the first quarter of 2012, up
7.9 percent, against $332.5 million of revenue for the same period of 2011.
The company posted $171.8 million of revenue from its
data and internet service, up 16.2 percent, as compared to $152.1 million for
Q1 2011. Revenue from the voice services increased 7.9 percent at $89.6 million
in Q1 2012, against $83 million for Q1 2011.
The company posted capital expenditures of $79.1
million for the quarter, compared to $79.3 million for Q1 2011 and
$86.6 million for the prior quarter. The decrease over the prior quarter
primarily reflects seasonally lower spending, the timing of projects and the
completion of certain fourth quarter strategic initiatives which did not
recur.
The Company expects capital investments for 2012 to be
approximately $345 to $355 million with the majority tied to new
sales opportunities.
The company posted $27.7 million increase in revenue
from enterprise customers, or 10.9 percent year over year, driven primarily by
data and Internet services and an increase in certain taxes and fees.
Intercarrier compensation revenue represented 2 percent
of total revenue for the first quarter.
Also, the company posted $1.1 million decrease in
revenue from carriers, primarily due to churn and repricing for contract
renewals, partially offset by Ethernet services provided to wireline and
wireless carriers to serve their end users.
Net income grew 53.2 percent to $19.3
million for the quarter from $12.6 million for the same period
last year.
The Company is planning a nationwide rollout this
summer of Enhanced Management, or Phase I of its Intelligent Network
capabilities for converged, VPN and Ethernet services. The Company also
plans to roll out a new Ethernet solution in the second half of 2012.
“Our revenue this quarter reflected the impact from
seasonally lower sales in the prior quarter, with carrier disconnects that
increased revenue churn late in the quarter, offset with increased taxes and
fees. We’re headed into the second quarter with strong sales and
market demand,” said Mark Peters, executive vice president and
chief financial officer of tw telecom.
