Mattoon firm's earnings jump despite drop in revenue for first quarter
MATTOON – Consolidated Communications' first-quarter earnings were more than double those of a year ago, even though revenues were down 3 percent, the company reported Thursday.
The Mattoon-based company, which provides voice, data and video services to customers in Illinois, Texas and Pennsylvania, reported net income of $6.92 million for the quarter that ended March 31, up from $3.29 million for the same period a year ago.
That amounted to earnings of 23 cents per common share, up from 11 cents per share a year ago.
Meanwhile, first-quarter revenues fell to $98.3 million, down from $101.7 million a year ago.
Consolidated's local access lines dropped by 5.8 percent from a year earlier, but demand for other services increased sharply. Digital Subscriber Line (DSL) customers were up 8 percent, Internet Protocol TV customers were up 37 percent and Voice Over Internet Protocol lines were up 19 percent.
Income from operations rose largely as a result of "cost structure improvements" in 2009, according to a release from the company.
During the first quarter of this year, Consolidated announced plans to phase out its operator services division and announced the sale of its Consolidated Market Response unit.