Towerstream 3Q losses widen, but company sees growth in Wi-Fi
TOWERSTREAM CORP. reported a third-quarter net loss of $6.1 million, or 9 cents per share, compared with a net loss of $5.4 million, or 10 cents per share, during the same period last year. Towerstream's revenue, however, rose 3.4 percent in the third quarter to $8.4 million.
MIDDLETOWN – Towerstream Corp. posted a net loss of $6.1 million, or 9 cents per share, during the three months ended Sept. 30, widening by 13.6 percent the $5.4 million, or 10 cents per share, loss reported for the third quarter of 2012.
The third-quarter, year-over-year net loss increase followed net loss increases of 30.9 percent and 28.4 percent in the second and first quarters, respectively.
Even as its bottom line fell, the fixed-antenna 4G and Wi-Fi/small cell network services provider saw a 3.4 percent rise in sales to $8.4 million in the third quarter from $8.1 million during the same period last year.
Customer churn – which refers to the percent of revenue lost on a monthly basis from customers disconnecting from the Towerstream network or reducing their bandwidth – was 1.81 percent in the third quarter, compared with 2.37 percent during the second quarter and 1.54 percent in the third quarter of 2012.
“We are pleased to report strong rent-based revenue growth for Hetnets Tower Corp., which operates our shared wireless infrastructure segment,” said Jeffrey Thompson, president and CEO of Towerstream. Revenue for the business more than doubled from the second quarter to the third quarter, he said.
“Network performance has been stellar and traffic volume has increased significantly since service was launched with a major cable company in the third quarter,” he added.
Towerstream’s Los Angeles market gave the strongest performance in the third quarter, with revenue of $2.02 million, an increase of 1.3 percent over the $1.99 million reported in the third quarter of 2012. Earnings before interest, taxes, depreciation and amortization in the market for the quarter grew 1.6 percent to $1.1 million.
The company also reported that the Providence-Newport market showed revenue of $115,000 in the 2013 third quarter, a decline of 12.9 percent compared with the 2012 third-quarter revenue of $132,000.
Towerstream’s Boston market revenue fell 3.8 percent to $1.6 million compared with last year’s revenue of $1.7 million.