SureWest credits broadband growth for Q2 results

ROSEVILLE
August 7, 2008 6:58am

Central Valley-based independent communications holding company SureWest Communications (NASDAQ: SURW) of Roseville says it had second quarter net income of $20.8 million or $1.47 per diluted share on revenue of $60.2 million.

Revenue was up 36 percent from the $44.4 million in the second quarter of 2007. Net income a year ago was just over $1.5 million or ten cents per diluted share.

A big chunk of revenue -- $19 million – came from the sale of SureWest Wireless in the second quarter

"It is clear that the decision we made several years ago to focus SureWest on broadband and advanced network services was the correct move, evidenced in part by our excellent second quarter results,” says Steve Oldham, SureWest's president and chief executive officer.

"In the Sacramento market we experienced considerable broadband segment growth, demonstrating there is a substantial market for our triple-play bundle and great demand for our new Voice over IP service,” he says.

He also says the company’s expansion into the Kansas City region “has proven to be a great growth opportunity for SureWest and we have achieved immediate success in our efforts to obtain new broadband business customers.”

Mr. Oldham says with new network expansion and aggressive marketing campaigns underway in the area, SureWest expects to see sizeable residential growth in the second half of the year in the Kansas City region.