Cincinnati Bell Swings to Profit

It beats revenue expectations.
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Cincinnati Bell (CBB) - Get Report, a provider of data and voice communications services, said it swung to a profit in its third quarter, helped by stronger sales and lower expenses.

The company earned $22.5 million, or 9 cents a share, in the quarter, compared with a loss of $46.7 million, or 19 cents a share, a year ago. Analysts surveyed by Thomson Financial were expecting 8 cents a share.

Third-quarter revenue rose 7% from a year ago to $320.1 million vs. analysts' expectation of $306.51 million.

For 2006, the company expects revenue of $1.2 billion, in line with analysts' expectation of $1.24 billion.

Revenue from local communication services was $187.4 million equal to previous year quarter revenue, as an 11% rise in data revenue offset lower voice revenue. Revenue from hardware and managed services was up 32% at $57 million, driven by an increase in equipment sales and data center and related managed service activity. Revenue from wireless services increased 12% to $65 million.

"Cincinnati Bell's third quarter performance clearly demonstrates the effectiveness and consistent execution of our strategy," the company said. "We continue to operate the best wireless network in Cincinnati and Dayton and generate subscriber growth in an extremely competitive market as evidenced by strong postpaid and record breaking DSL net activations in the quarter."

The company's shares were trading down 15 cents, or 3.22%, at $4.48 Thursday.

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