Consolidated revenue increased $18 million compared to the prior year - revenue from strategic products was up 19 percent year-over-year
Entertainment and Communications revenue totaled $769 million, up $25 million over the prior year - Fioptics revenue was up 33 percent compared to 2015
Record-high 44 thousand Fioptics internet net activations - Fioptics is now available to 67 percent of Greater Cincinnati
Net income totaled $102 million, resulting in diluted earnings per share of $2.18
Adjusted EBITDA1 totaled $305 million in 2016, increasing $3 million over the prior year
Proceeds from the $625 million of 7% senior notes due 2024 were used to redeem 8 3/8% senior notes due 2020 and to repay a portion of the outstanding Corporate Credit Agreement Tranche B Term Loan
Gain on the sale of 4.1 million CyrusOne common shares totaled $157 million
CINCINNATI, Feb. 15, 2017 (GLOBE NEWSWIRE) -- Cincinnati Bell Inc. (NYSE:CBB) today announced financial results for the fourth quarter and full year of 2016, highlighted by year-over-year consolidated revenue and Adjusted EBITDA growth. Strategic revenues increased more than $100 million during 2016 totaling $638 million on continued strong demand for fiber products and IT services. Total internet subscribers now exceed 300,000, increasing 15,800 compared to a year ago. Fioptics video subscribers totaled 137,600 at the end of 2016, up 20 percent compared to the prior year. Fioptics is now available to 533,400 addresses after passing 101,400 additional units during 2016.
"2016 was an exceptional year for Cincinnati Bell. We achieved our full year financial guidance and significantly improved our capital structure. The on-going success of our investments in fiber and IT solutions generated both revenue and Adjusted EBITDA growth,” said Ted Torbeck, chief executive officer. Torbeck also added, “Demand for Fioptics and our IT solutions remains impressive, driving the decision to continue investing in our strategic products for future growth. In addition, we are identifying opportunities to further reduce costs associated with the legacy copper network as we progress toward positive free cash flow for 2017."
CONSOLIDATED RESULTS2 Year-to-date consolidated revenue was $1.2 billion, up 2 percent compared to a year ago. Fourth quarter consolidated revenue totaled $285 million, down 1 percent compared to the prior year. Operating income was $93 million and $11 million for the full year and fourth quarter of 2016, respectively. Adjusted EBITDA for the year was $305 million, up $3 million year-over-year. Adjusted EBITDA for the quarter also increased $3 million compared to the prior year totaling $74 million. Net income for the year totaled $102 million, resulting in diluted earnings per share of $2.18. Fourth quarter net loss of $1 million was due primarily to cost-out initiatives incurred during the quarter, resulting in a diluted loss of $0.09 per share.
Entertainment and Communications Segment
Entertainment and Communications revenue totaled $193 million for the quarter and $769 million for the full year, up $5 million and $25 million, respectively, from the same periods in 2015.
- Fioptics revenue increased 33 percent during 2016 compared to a year ago, totaling $69 million for the quarter and $254 million for the year.
- Strategic revenue for business and carrier customers totaled $51 million for the quarter and $198 million for the full year, up $6 million and $23 million, respectively.
Operating income was down from a year ago due primarily to additional depreciation expense associated with accelerating our fiber investments and initiatives to reduce future costs associated with our legacy copper network. Operating income was $15 million and $91 million for the fourth quarter and full year, respectively.
Adjusted EBITDA was $70 million for the quarter, up $1 million compared to a year ago. Full year Adjusted EBITDA totaled $283 million, consistent with the prior year.
IT Services and Hardware Segment
Revenue for the quarter was $96 million, down $9 million from the fourth quarter of 2015 due to declines in lower margin Telecom and IT hardware revenue. Full year revenue was $431 million, compared to $435 million in 2015.
- Strategic revenue was $49 million in the quarter, up 3 percent over the prior year. Full year strategic revenue was $197 million, up 10 percent compared to a year ago.
- Telecom and IT hardware revenue was $38 million for the quarter, compared to $49 million in the fourth quarter of 2015. Full year Telecom and IT hardware revenue was $206 million, down $25 million compared to the prior year.
Operating income was $1 million for the quarter, down $4 million over the prior year. Operating income increased $3 million on an annual basis, totaling $23 million for the full year 2016.
Adjusted EBITDA for the quarter was $8 million, down from $9 million a year ago. Full year Adjusted EBITDA totaled $40 million, up $4 million from the prior year.
2017 Outlook
Cincinnati Bell is providing the following guidance for 2017:
CONTACT:
Cincinnati Bell Inc.
Investor contact:
Josh Duckworth, 513-397-2292
[email protected]
Media contact:
Jane Weiler, 513-397-9941
[email protected]
