Hawaiian Telcom profits drop in 3Q
HONOLULU - Telephone and Internet provider Hawaiian Telcom says its third-quarter profit dropped by more than half to $2.1 million, in part because of costs to upgrade its broadband network.
The Honolulu-based company said Tuesday its earned 18 cents per share, compared with 52 cents per share, or $5.6 million, during the same quarter a year earlier.
Hawaiian Telcom said it had a $2 million increase in depreciation and amortization costs because of investments made in its broadband network and assets from its purchase of local carrier Wavecom Solutions.
The company's revenue rose 1.1 percent to $97.7 million as growth in video and high-speed Internet helped offset a decrease in phone lines.
Hawaiian Telcom CEO Eric Yeaman said the results reflect the company's repositioning in key growth areas.
"We believe our continued investment in our key strategic initiatives will further transform our growth profile, lead to stronger financial results and drive long-term shareholder value," Yeaman said.
Shares of Hawaiian Telcom rose 3 cents, less than 1 percent, to $27.11 on Tuesday.
The company said it added more than 2,100 TV customers in the quarter, ending the period with about 15,800 television subscribers. It said its average television revenue per user grew 12 percent from the second quarter.