What Do the Numbers Look Like

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

What Do the Numbers Look Like

Third quarter revenue numbers have been streaming out via press releases. Here's a look at some of them.

Windstream's 3Q2013 numbers are declining. "Overall consumer service revenues were $324 million, a decrease of 3 percent from the same period a year ago" - of which, "Consumer broadband service revenues were $119 million, a 4 percent increase year-over-year."

"Business service revenues were $916 million in the third quarter, an increase of $10 million or 1 percent year-over-year." That makes for a $4 Billion dollar annual revenue rate. (And $8.8B in debt.) WIND has spent quite a few years trying to chase Enterprise customers. Today, Enterprise customers grew 6% YOY. Enterprise customers generate $750 or more in revenue per month, that "Average service revenue per business customer per month increased 5 percent from the same period a year ago." Windstream's customer base is approximately 3.4 million people, as of June 2013, according to Seeking Alpha. "The enterprise segment contributes 60%, while the broadband segment contributes 8% to the company's total revenue." That is probably true of other siimilar CLECs like EarthLink or C-Link.

WIND's "Wholesale revenues in the third quarter were $148 million, a decline of 19 percent from the same period a year ago due to lower intrastate access rates as part of inter-carrier compensation reform implemented in July 2012 and fewer minutes of use." WIth consumer and wholesale declining, Enterprise will have to be where the revenue replacement occurs. However, Enterprise is a highly contested market segment.

Fierce reports, "CenturyLink reported that despite strong gains in broadband, IPTV and business Ethernet, Q3 2013 operating revenues declined 1 percent year-over-year to $4.52 billion due to ongoing access line losses and lower access results. These losses were "partially offset" by strategic business service revenues like Ethernet and an increase in broadband Internet and Prism TV subscribers. ... Ended the quarter with 149,000 CenturyLink PrismTM TV subscribers, an increase of approximately 17,000 subscribers in third quarter 2013." C-Link is having the same problem all the ILECs (and EarthLink) is experiencing: declining consumer revenue due to decline of wireline, but offsetting by triple-play revenues.

C-Link's "Total business revenues remained flat year-over-year at $1.54 billion as growth from higher bandwidth services helped to offset lower legacy services (T1) and data integration revenues.... Sales of strategic services such as MPLS and Ethernet were the key growth drivers, rising 6.3 percent to $640 million."

Despite wireless backhaul, wholesale revenue declined for C-Link, like it did for WIND. Some of that is a pricing squeeze on high bandwidth circuits, some of it is lower voice revenue, and some of it is that carriers aren't selling a lot of T1s. This may be an ongoing trend like consumer wireline.

EarthLink's "Revenue fell $4.8M sequentially to $308.6M. Retail growth product revenue reached an annualized run-rate of $180M, up from $157M during Q2, while Total growth product revenues, including Wholesale, reached an approximate $324 million annualized revenue run rate, up from $313M during Q2. Still a long way to go, but moving forward nonetheless." [TelecomRamblings] EarthLink's Business Services revenue was $240.6 million in the third quarter of 2013, or 78% of total revenue, compared to $243.3 million in the second quarter of 2013.

This is an interesting stat: "Sales productivity per rep increased 92% over the third quarter of 2012 as EarthLink's sales efforts are increasingly focused on larger, multi-location customers." "Each EarthLink sales rep generated about $4,600 of new MRR per month in Q3.... In Q3, search engine marketing generated $144,000 in new MRR bookings."

tw telecom is another billion dollar CLEC. Revenue in 3Q was $393.2 million, while showing a $9.4 million net loss. twt "grew enterprise revenue 1.9% sequentially and 8.5% year over year, and grew data and Internet revenue 3.0% sequentially and 14.1% year over year" .. twt "completed a successful offering of $800 million of Senior Notes, retired 95% of 8% Senior Notes and fully settled the Company's convertible debt."

Cbeyond is slipping. "Third quarter 2013 total revenue of $113.7 million compared with $121.5 million in the third quarter of 2012 and $118.2 million in the second quarter of 2013." The high points are that "Cbeyond 2.0 revenue was $17.8 million, or 15.7% of total revenue in the third quarter of 2013, an increase of 11% from the second quarter of 2013;" - and ARPU is $653.

Broadsoft has quarterly revenue of $42.9M which is up 7% year-over-year (YOY). Yet the "Net loss for the third quarter of 2013 was $4.1 million." Was that the tab for Connections 2013? Interesting that GAAP gross profit was 75% of total revenue.

8x8 gives great info in their financial statements, like churn (Monthly business customer churn was a 1.5%), ARPU (Average monthly service revenue per business customer was $268), Average number of subscribed services per business customer (12.2), "Revenue from business customers increased 25% year-over-year to a record $30.3 million and represented 98% of total revenue"; and 'Service margin was 81%, compared with 77% in the same period a year ago". 8x8 "ended the quarter with 34,674 business customers" - an addition of 1300.

One of Forbes top 100 best small businesses sold its dedicated server business to The IRC Company, Inc. (dba Black Lotus Communications) for about $0.7 million, which wasn't included in the $30.8 million in its 2Q of fiscal 2014, that is 98% B2B rev.

I missed some companies like Level3 and XO. This was plenty to look at.



Related Articles to 'What Do the Numbers Look Like'
power-lines-unsplash-small.jpg
hosted-pbx.jpg
toad-swallow-snake-picture.jpg
windstream1Q09.jpg

Featured Events