tw telecom Sees Revenue Boost From Enterprise Customers

By Kelly Teal Comments
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tw telecom inc. saw revenue growth in its second quarter, mostly thanks to increased spending from enterprise customers, but it did report smaller net income than a year ago.

That news comes as the Ethernet and managed services provider works to finalize its sale to Level 3 Communications Inc. Level 3, incidentally, just recorded its second straight profit-making quarter, after several years of losses.

Level 3 and tw telecom each are seeing more traction among enterprise customers. Both companies target that segment via the indirect channel. tw telecom, for its part, said on Wednesday afternoon that its business users contributed $25.6 million more to the company’s financials than in 2013’s second quarter. That amounted to an 8.7 percent year-over-year increased, fueled by greater consumption of Internet and data services, tw telecom said.

Overall, tw telecom showed $419.7 million in revenue for the quarter ended June 30, compared to $389.5 million the previous year. That’s a 7.8 percent rise and it was due mostly to business-services growth. Net income, however, fell from $17.3 million to $11.1 million, because of higher depreciation expenses from net-asset additions, merger-related costs and higher interest expenses. Customer churn dropped somewhat, from 0.9 percent a year ago to 0.8 percent; tw telecom said it served more than 29,700 clients as of June 30.

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