Cincinnati Bell Q3 results

31 Oct 2008

Cincinnati Bell reported profit rose 4% year-on-year in the third quarter to 30 September 2008 with net income of USD27 million. Overall, revenue rose 1% to USD346.5 million, driven by growth of USD21 million in service revenue from wireless, wireline data, long distance, VoIP, and data centre and managed services. Revenue in the wireless division was USD80.8 million, an increase of 8% from USD75.1 million twelve months previously, while sales in its traditional wireline division fell to USD200.6 million from USD202 million for the same period in 2007. Overall adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter equalled USD120 million, which was even with a year ago. ‘Cincinnati Bell’s third-quarter results demonstrate solid performance in the face of challenging times in the US economy,’ said Jack Cassidy, the operator’s president and chief executive officer.

At the end of the quarter, Cincinnati Bell had a total of 231,000 DSL subscribers and 567,000 wireless customers. The company’s number of pre-paid subscribers declined 8% year-on-year, while it saw growth of 6% in its post-paid mobile subscriber base. Post-paid quarterly average revenue per user (ARPU) was USD48.82 and pre-paid ARPU was USD26.33.