What happened
Shares of Cincinnati Bell (CBB) have gotten crushed today, down by 15% as of 12:15 p.m. EDT, after the company reported second-quarter earnings. The regional telecommunications company missed on both the top and bottom lines.
So what
Revenue in the second quarter grew 14% to $296.8 million, which led to a non-GAAP net loss of $0.19 per share. Consensus estimates had called for $298 million in sales and an adjusted loss of $0.13 per share. Operating income was $20 million and adjusted EBITDA was $80 million. The company had 235,300 Fioptics internet subscribers and 145,100 Fioptics video subscribers at the end of the quarter.
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Cincinnati Bell closed its merger with Hawaiian Telcom on July 2, 2018, shortly after the end of the quarter.
Now what
"In the second quarter, we executed well across our two distinct complementary lines of business with the continued strength in our Fioptics offerings, reinforcing our metro-fiber densification strategy," CEO Leigh Fox said in a statement.
The company also revised its full-year guidance for 2018. Full-year revenue is now expected in the range of $1.375 billion to $1.46 billion, with adjusted EBITDA of $363 million to $379 million. In February, Cincinnati Bell forecast revenue for 2018 to be in the range of $1.2 billion to $1.275 billion, with adjusted EBITDA of $320 million to $330 million. The revised outlook only adds in Hawaiian Telcom's expected contribution to the combined company. The guidance also factors in new revenue recognition standards.
