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Broadband investment weighs on Hawaiian Telcom earnings

By Star-Advertiser Staff


Hawaiian Telcom said today a decline in the company’s third-quarter earnings was due mostly to an increase in costs associated with the expansion of its broadband network.

The state’s largest phone company reported net income of $5.6 million, or 52 cents a share, in the July-to-September quarter, down from $7.4 million, or 68 cents a share, in the same period a year earlier.

Revenue totaled $96.6 million in the third quarter, down slightly from $97.0 million a year earlier. Revenue growth in video, high-speed internet and equipment sales was offset by a 5.6 percent decline in access lines, also known as land lines, the company reported.

Revenue from the company’s video service, which launched in July 2011, rose to $1.53 million in the third quarter from $1.04 million in the second quarter. There were 8,444 subscribers to the video service as of Sept. 30, up from 6,354 three months earlier.

“Our quarterly results continue to show positive momentum in our key next-generation services,” said Eric Yeaman, Hawaiian Telcom’s president and chief executive officer. “The success of Hawaiian Telcom TV continues to be a strong catalyst driving our second consecutive quarter of sequential growth in consumer revenues.”

Hawaiian Telcom’s shares were up 15 cents at $16.65 in late trading on the Nasdaq Global Market.

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nodaddynotthebelt wrote:
A big problem with Hawaiian Telcom is their unwillingness or inability to expand their services. I myself am unable to subscribe to their services because they do not have coverage in my area. I have checked with others whether they are able to get service in their area and they have told me that they, too, cannot get it. And we don't live in the country or in isolated areas. That does not bode well for Hawaiian Telcom. That means that they are not able to acquire new customers in a lot of areas. It takes investment in their infrastructure to gain customers. They say that they have invested but I do not see the results. Until Hawaiian Telcom can expand to other areas they will continue to falter. They need to invest in their company's infrastructure before they can really compete with Oceanic. We need a healthy competition in order to be competitive prices. The state has not exactly been helpful in this area. Union labor has also been a big stumbling block for Hawaiian Telcom in their efforts to contnue completely free health coverage for their workers. How many companies are able to afford free medical coverage in today's economy and high medical premiums?
on November 8,2012 | 01:06PM
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