Business Ethernet provider tw telecom says profit fell 11 percent in the fourth quarter of 2013, but its revenue was up due to the strength in its enterprise and data-and-Internet business.
The Colorado-based company's profit was $15.4 million, down from $17.3 million in Q4 2012. Total revenue was up 6.4 percent, to $400 million. Enterprise revenue rose 8.2 percent and data-and-Internet revenue was up 14.1 percent.
The profit slip reflects higher depreciation expenses, the Wall Street Journal noted.
In the fourth quarter, the company announced a strategic market expansion to extend its metro fiber footprint into five new high demand markets and accelerate the density of its metro-fiber footprint in 27 existing markets.
“In 2013, we achieved strong comprehensive financial results, deployed substantial product innovation, solutions and features and returned value to shareholders through share repurchases," said Larissa Herda, tw telecom’s chairman and CEO. “We also successfully executed our growth initiatives and as a result, we expect to increase our 2014 revenue growth rate over that of 2013. ... We believe we are doing all the right things to position our business for long-term growth and market differentiation, as we continue to focus on driving shareholder value."
tw telecom's revenue growth wasn't enough to impress at least one analyst.
“Following a Q4/13 report with both revenue and adjusted EBITDA marginally lower than our and consensus estimates, and an initial 2014 outlook that calls for continued margin pressure and higher capex spending, we believe the ultimate growth recovery for tw telecom is now further delayed," noted Canaccord Genuity's Greg Miller.
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