Telecom Lead America: tw telecom said its capital investments (Capex) for the year are expected to be at the lower end of the original guidance of $345 to $355 million.
In the third quarter of 2012, capital expenditures were $83.9 million as compared to $86 million in the same period last year. Majority of the investments was related to success-based initiatives.
tw telecom expects capital spending to increase in the fourth quarter with much of the increase related to the timing of both success-based and strategic initiatives including network expansion and other infrastructure projects. The company also expects the majority of these investments to be tied to new success-based opportunities.
Meanwhile, revenue of 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, increased its revenue 7.1 percent to $368.9 million.
Net income of the company grew 43.7 percent to $21.0 million.
The company had approximately 27,700 customers as of September 30, 2012. Customer churn was 0.9 percent for the current quarter, down from 1.0 percent in both the prior quarter and the same quarter last year. tw telecom ended third quarter with over 28,000 fiber route miles (of which approximately 22,000 were metro miles).
“We achieved another quarter of solid comprehensive financial results as we absorbed the impact of some expected regulatory and tax rate decreases. Our data and Internet revenue, which now represents over half of our total revenue stream, grew at an increased sequential rate this quarter than the past two quarters as we continue to differentiate ourselves with powerful customer solutions,” said Mark Peters, tw telecom’s Executive Vice President and Chief Financial Officer.
“Throughout the past year we’ve transitioned more of our sales force to focus on larger enterprise opportunities, contributing to a slight contraction in our sales headcount year over year. We expect to grow our sales force over the course of the next year to leverage our new product offerings as well as market opportunities across our national footprint,” Peters added.