Hawaiian Telcom’s parent posts narrower quarterly loss
Hawaiian Telcom’s parent posted a narrower third-quarter loss and said its $2.9 billion sale to a subsidiary of Macquarie Infrastructure Partners remains on track to close in the first half of next year.
Cincinnati Bell reported today a loss of $10.8 million, or 21 cents a share, compared with a loss of $16.2 million, or 32 cents a share, in the year-earlier period. The company said its results included a one-time $6 million bonus to reward employees for their efforts in minimizing the impact of the COVID-19 pandemic to the business.
Revenue rose 1.8% to $389.5 million from $382.5 million in the year-earlier quarter with Hawaiian Telcom contributing $74 million of that amount.
“The regulatory approval process is progressing as expected,” Cincinnati Bell President and CEO Leigh Fox said in a statement. “Our team continues to work closely with MIP to ensure a successful close in the first half of 2021.”
The Ohio company said fiber-to-the-premise activations — the installation and use of optical fiber from a central point directly to residences, apartment buildings and businesses for high-speed internet access — is now available to 36% of Hawaii, or 178,100 addresses. FTTP internet subscribers in Hawaii increased by 1,200 in the quarter to 58,600 from the previous quarter.
FTTP high-speed internet subscribers were up 20,400 in Cincinnati and 4,000 in Hawaii from the same period a year ago.
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Cincinnati Bell’s shares fell 14 cents, or 0.9%, to $15.21 after the results were released. Cincinnati Bell shareholders, which include former shareholders of Hawaiian Telcom, will receive $15.50 a share when the deal closes.
“Despite the ongoing challenges presented by COVID-19, we continue to execute, delivering strong financial results quarter after quarter,” Fox said. “As we approach the end of 2020, demand for fiber and our strategic IT solutions remains robust, and I am confident that we will achieve our goal of generating full year adjusted EBITDA growth.”
EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company’s overall financial performance and sometimes is used as an alternative to net income.
Cincinnati Bell said its operating income rose 8% to $24.7 million from $22.8 million in the year-earlier quarter.
