CINCINNATI-Cincinnati Bell Inc. reported that it added 15,000 postpaid wireless customers in the fourth quarter of 2005-the company’s best wireless performance since the fourth quarter of 2001. However, the company’s overall earnings slipped from $18.3 million, or 7 cents per share, a year ago to $10 million, or 4 cents per share. Weakness in Cincinnati’s wireless revenue came from drops in voice and roaming revenue due to the merger of Cingular Wireless L.L.C. and the former AT&T Wireless Services Inc., which owned a minority stake in Cincinnati Bell’s wireless operations.
Cincinnati Bell’s net new prepaid customers came to 9,000, more than double Cincinnati Bell’s prepaid adds in the fourth quarter of 2004. The operator cited network improvements and resulting improved quality for helping push its churn rate down to 1.8 percent, its fifth consecutive quarter of improvement and down a full percentage point from its level of 2.8 percent in the fourth quarter of 2004.
The company reported that its wireless segment generated quarterly revenue of $58 million and yearly revenue of $238 million, compared to $262 million a year ago. The decline in revenue came from lower voice and roaming revenue, but was partially offset by equipment and data revenue, according to the company.
Adjusted earnings before interest, taxes, depreciation and amortization was at $52 million, plunging $20 million from 2004 due to lower average revenue per user and an increase in customer acquisition expense, “which include handset costs associated with migrations to the GSM network,” the company said. Most of the operator’s subscribers are now on its GSM network, with less than 10 percent still using TDMA handsets.
Cincinnati Bell also reported that the number of its customers who bundle multiple services surpassed 150,000, a jump of 22 percent from a year ago. The operator offers bundles that include high-speed Internet, landline voice and wireless service.
“The past twelve months have been a period of dramatic transformation for Cincinnati Bell,” said Jack Cassidy, president and chief executive officer of the company. “We succeeded in strengthening our balance sheet by completing a major debt refinancing. We defended and strengthened our core access line business with continued success in bundling.”
