Cincinnati Bell results for Q1

1 May 2008

Cincinnati Bell announced revenue of USD349 million for the first quarter of 2008 which was an 11% increase compared to the first quarter of 2007. Operating income was USD57 million including a USD24 million restructuring charge related to the company’s new labour agreement with the Communications Workers of America. Before special items, net income was USD27 million up 19% from last year. Adjusted EBITDA was USD120 million, up 2.5% from a year ago.

Wireless service revenue in the quarter was USD72 million, up 16% from the prior year quarter. This led to year-over-year increases of 64% in operating income to USD12 million, and 30% in adjusted EBITDA to USD22 million. The operator had 579,000 wireless customers at the end of the quarter, including an 8% increase in post-paid customers. Post-paid quarterly monthly ARPU was USD47.47, up 6% from the first quarter of 2007. Pre-paid ARPU was USD26.17 a month, an increase of 17% year-over-year. Quarterly wireline revenue was USD203 million, down 1% from the first quarter of 2007. Increased revenue from data services, long distance and new markets partially offset lower voice revenue in the company’s traditional service area. Year-on-year access line loss in the quarter was 6.3%. Business lines grew 1.5% while DSL net additions were 6,000, bringing total subscribers to 228,000, a 10% increase from a year ago. DSL penetration increased to 44% in the company’s franchise areas.