Otelco revenues fall 7.3% in Q2, net profit down 41%

Wednesday 14 August 2019 | 10:38 CET | News

US operator Otelco reported second-quarter revenues down 7.3 percent to USD 15.7 million, due to a continued loss of residential voice customers and competitive pricing pressures on internet services, the company said. Net profit dropped 41 percent to USD 1.7 million, due to an increase in SG&A costs related to its long-term network design plans. EBITDA fell to USD 5.7 million from USD 7.1 million a year ago. 

Capex increased to USD 2.9 million in the quarter, and Otelco said it expects the full year figure to rise 28 percent to USD 11.5 million in order to boost internet speeds and limit customer churn. The company also paid off USD 1.1 million in debt in Q2 and said it ended the period with net debt at 2.74x EBITDA. 

During second quarter, Otelco announced plans for the additional deployment of fibre to over 4,100 locations in Alabama, the deployment of VDSL throughout all of its service areas and the upgrade of its cable distribution network to Docsis 3.1 next year.

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Categories: Fixed
Companies: Otelco
Countries: United States
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