Hawaiian Telcom swung to a $279,000 loss in the third quarter after investing further in its next-generation fiber optic network and paying off pensions for retirements.
The technology company, which is scheduled to officially release its earnings today, earned $105,000, or
1 cent a share, in the year-earlier period. It lost
2 cents a share last quarter.
Hawaiian Telcom’s revenue fell 3 percent to
$97.8 million from $100.9 million in the year-ago period.
The company said it paid $500,000 in noncash pension expenses related to employee retirements and $500,000 in prorated investments for the expansion of its infrastructure.
“I am proud of what Hawaiian Telcom and its employees have been able to achieve over the last six years as a public company,” Hawaiian Telcom President and CEO Scott Barber said in a prepared statement. “Six years ago we anticipated the coming industrywide decline in traditional legacy revenues and made the strategic decision to invest in upgrading our network with fiber that would enable us to provide advanced high-bandwidth services to Hawaii’s consumers and businesses.”
Since 2010 the company has been investing in building and expanding its fiber network statewide as it transforms from its legacy business as a landline telephone company. Hawaiian Telcom offers services including Internet, video, voice, wireless, security and cloud services supported by its fiber network.
Its third-quarter business revenue remained flat at $44.8 million.
Business strategic revenue from the company’s data center and cloud services increased 12 percent to $17 million. This revenue stream represented 38 percent of the total reported business revenue compared with 34 percent in the same period a year ago.
Hawaiian Telcom’s consumer revenue was
$35.7 million compared with $36.6 million in the third quarter of 2015.
The consumer revenue decrease was due to the year-over-year decline in Hawaiian Telcom’s landline business and voice services.
Revenue from voice services was down nearly
9 percent, to $21.6 million from $23.5 million.
Hawaiian Telcom’s consumer strategic revenue — TV and residential Internet services — increased 3 percent year-over-year to
$17.5 million. The increase was driven by video revenue.
Video service revenue grew to $10.5 million for the quarter, up 21 percent from $8.7 million a year ago, driven by new subscribers.
The company said it added about 5,800 Hawaiian Telcom TV subscribers over a one-year period to end the quarter with 39,800 subscribers. The company said it enabled 3,000 households for Internet and TV service during the quarter, increasing the number of households that can receive its service to 201,000.