Hawaiian Telcom reports a Q1 profit - Hawaii News Now - KGMB and KHNL

Hawaiian Telcom reports a Q1 profit

By Howard Dicus - bio | email

HONOLULU (HawaiiNewsNow) - Hawaiian Telcom is profitable as growing Internet business offsets the erosion of legacy landline business.

Access lines - a declining business for all telephone companies - fell 6 percent in Q1 2011 compared to 7.3 percent in Q1 2010 and 8.4 percent in Q1 2009.

The company signed almost 4,000 more high-speed Internet subscribers, growing that segment of the business 4 percent to 101,200 subscribers.

Telcom also added 4,500 residential bundles, driving penetration to 36 percent, up from 34 percent in Q1 2010.

"Solid progress," said CEO Eric Yeaman. "Our innovative bundle offers and promotions helped winback and retention efforts." He said the rollout of IP-based television services will make bundle deals more attractive.

The quarter at a glance:

  • Revenue: $96.5 million. Year ago: $100.3 million.
  • Net income: $5.5 million. Year ago: $23.3 million loss.
  • Per share: 51 cents. Year ago: $54.49 loss.

Revenue from long distance services fell 2 percent from year-before levels, to less than $9 million, despite higher rates as more customers switched to bundle contracts.

The company spent more on overtime during the quarter as it maintained service amid heavy rains, while cutting costs in other areas through outsourcing some IT work. 

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