Hawaiian Telcom’s net income declined by 27 percent in the second quarter from the same period a year earlier, primarily because of early extinguishment of debt and several other one-time factors, the company reported today.
The state’s largest phone company earned $4 million during the April-through-June quarter, or 36 cents a share, down from $5.5 million, or 51 cents a share in the year-earlier quarter.
Early debt extinguishment of $3.7 million, a $2.5 million increase in depreciation and amortization, and a $2.5 million deferred tax provision more than offset a one-time $6.5 million gain from the sale of real estate, according to a news release from the company.
Hawaiian Telcom also reported that revenue grew by 2.4 percent to $97 million in the second quarter from $94.7 million in the second quarter of 2012. Revenue growth was driven by increases in the number of subscribers to its video and high speed internet services, as well as gains from its acquisition of Wavecom, according to the news release. Hawaiian Telcom TV subscribers more than doubled to 13,600 in the second quarter from a year earlier.
“Our investments are transforming the company and successfully repositioning us for the future,” said Eric Yeaman, chief executive officer. “We have built a strom set of assets and have the right strategies to capitalize on the key opportunities that exist in our marketplace,” he said.
Hawaiian Telcom shares closed up 67 cents, or 2.5 percent at $27.89 on the New York Stock Exchange.