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Cincinnati Bell Swings to Profit

TSC and IRIS Staff

Cincinnati Bell(CBB), a provider of data and voice communications services, said it swung to profit in its second quarter, helped by increased wireless and data revenue, lower interest and income tax expenses.

The company earned $24.3 million, or 9 cents a share, in the quarter, compared with a loss of $29.8 million, or 13 cents a share, a year ago. After preferred dividends, the company earned $21.7 million. Adjusted for items, the company earned $20 million, or 8 cents a share. Analysts surveyed by Thomson Financial were expecting 7 cents a share.

Second-quarter revenue rose 2.5% from a year ago to $323.3 million as against analysts' expectation of $300.9 million.

Interest expense was $40.3 million in the quarter compared with $49.6 million a year ago. Income tax expense also decreased from $57.3 million in the year-ago period to $18.7 million in the most recent quarter.

Revenue from local communication services was down 1.2% at $187.4 million. Revenue from hardware and managed services was up 6.8% at $58.2 million, led by a rise in equipment sales and managed services revenue coming from expanded data center operations. Sales from wireless services increased 10.1% to $66.4 million, helped by growth in subscriber voice, data and equipment revenue.

The company's shares were trading at $4.25, up 33 cents, or 8.4% Wednesday.