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Atlantic Tele-Network, Inc. (NASDAQ: ATNI), today reported results for the fourth quarter and year ended December 31, 2012.
Fourth Quarter/Full Year 2012 Financial Results
“The fourth quarter was very much in line with the year, both of which were marked by increasing profitability and operating cash flow with a decline in U.S. retail wireless revenues offsetting solid growth in international wireless revenues,” said Michael Prior, Chief Executive Officer. “Increased operating profitability in both the quarter and full year 2012 was driven primarily by the elimination of duplicate expenses and other cost reduction initiatives in our U.S. wireless business. Both revenue and profitability for the year were also positively impacted by improvements in several of our international wireless properties, particularly Bermuda and the U.S. Virgin Islands.
“Our wireless subscriber metrics in the fourth quarter had mixed results. On the positive side, our international wireless subscriber base continued to increase and we repeated the pattern of recent quarters with solid prepaid subscriber growth domestically. On the negative side, we continue to struggle with the operating challenges from the dispersed, rural geography of our U.S. postpaid customer base, which we discussed recently in announcing our agreement to sell our main U.S. retail wireless business. Within that context, our team has done an excellent job of maintaining domestic ARPU and focusing on delivering high quality service to our customers.
“In the fourth quarter, U.S. wholesale revenues remained consistent with the prior year. Throughout the year, our roaming partners continued to overbuild, which was largely offset by growth in data volume per site. Wireline revenue was flat for the quarter and the year. However, that masks a more complex story as rapidly rising data and wholesale capacity revenue and U.S. enterprise sales volume are offsetting declines in traditional voice revenue and severe pricing pressure in the U.S. enterprise segment,” Mr. Prior added.