Thursday, July 28, 2005

Broadwing Sees Data/Internet and Broadband Revenue Grows 5% Sequentially

Broadwing Corporation reported Q2 revenue of $222.2 million, an increase of $80.1 million or 56% from $142.1 million in the second quarter 2004. Revenue in the second quarter 2005 was generated almost entirely from sales of communications services, which contributed $221.2 million to total company revenue in the quarter, an increase of 56% from the second quarter 2004. The year-over-year increase in communications services revenue was primarily the result of revenue contributions from Focal Communications Corporation, acquired in September 2004, and organic growth in legacy Broadwing services. Excluding the impact of acquired revenue, communications services revenue increased $18.3 million or 13% year-over-year, with strong growth in sales of data/Internet and broadband services.

The consolidated net loss for the second quarter was $38.3 million, or a loss of $0.52 per share, as compared to a reported net loss of $38.1 million, or a loss of $0.78 per share for the second quarter 2004. Net loss year-over-year was impacted primarily by increased depreciation expense related to assets acquired in the Focal acquisition, offset by higher gross margin and lower interest expense. The Company reduced its consolidated net loss by 12% from the first quarter 2005 due in part to reduced interest expense in the quarter.

See also