Alaska Communications Systems Drops into Loss on Lower Revenues
Published on: 10th May 2014
Note -- this news article is more than a year old.
USA based Alaska Communications Systems swung into a quarterly loss for the first three months of this year as revenues fell sharply.
The company saw revenues fall to USD78.3 million, from USD91 million a year ago, while the net loss came in at US$385,000 compared to a profit of US$10 million a year ago.
"Our financial metrics for the quarter were strong, and our balance sheet is strengthening as we pay down debt ahead of schedule while maintaining strong cash reserves. As anticipated, total revenue of $78.3 million decreased $12.7 million reflecting the shift of $15.7 million in AWN revenue categories, including roaming, which the company no longer reports but reside in its AWN affiliate," said Wayne Graham, ACS chief financial officer.
Last July, both Alaska Communications and GCI merged their respective mobile network infrastructure assets into a stand-alone company, AWN that then leases capacity back to the mobile networks.
Wireless subscribers decreased by 873 to 107,975 and wireless ARPU decreased to $52.51 from $53.14. The company is responding to the decline, by introducing new tariffs and contract terms, and revamping its retail stores.
The company's CEO Anand Vadapalli said in an analyst call that he expects those changes will improve its competitive position and lead to improvements in the future.However, business broadband connections increased to 19,304 from 19,285 and business broadband ARPU increased to $191.21 from $181.77. Alos, consumer broadband connections increased to 39,468 from 38,677 and consumer broadband ARPU increased to $49.46 from $48.59.