Wednesday, General Communication Inc. (GNCMA), reported a swing to loss in the fourth-quarter from the year-ago period, hurt by on-going capital investment and expansion program. The company issued its revenue outlook for fiscal 2009 while suspending its quarterly guidance.
The Anchorage, Alaska-based company reported a fourth-quarter net loss of $4.4 million or $0.09 per share, compared to a profit of $2.6 million or $0.04 per share in the corresponding quarter last year. On average, five analysts polled by Thomson Reuters estimated break even per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the fourth quarter of 2008 increased 11.7% to $146.6 million from $131.3 million in the prior-year similar period. Analysts estimated revenue of $141.56 million for the quarter. The revenue increases were attributed to all business lines except for network access services.
GCI president, Ron Duncan said, ""We ended the year with a strong push in wireless adding 8,200 new customers in the fourth quarter of 2008 and crossing the 100,000 customer threshold in early 2009. Our 2008 results position us to attain our goal of $200 million of EBITDA this year."
Consumer revenues for 2008 totaled $255.6 million, an increase of 14.4% over 2007. Network access revenues for 2008 totaled $153.8 million, a decrease of 5.8% as compared to 2007. Commercial revenues for 2008 totaled $114.7 million, an increase of 9.6% over 2007. Network access revenues decreased, primarily due to the transition of AT&T Mobility traffic off of the GCI network.
GCI's on-going capital investment and expansion program increased non-cash depreciation and amortization expense from the prior year by $26.8 million, an increase of 30.5%.
For fiscal 2008, the company reported a net loss of $1.9 million or $0.04 per share, compared to a profit of $13.7 million or $0.23 per share in 2007.
GCI's revenues for 2008 increased 10.6% to $575.4 million over 2007 revenues of $520.3 million. The company's 2008 revenues exceeded revised revenue guidance in the range of $560 million to $570 million provided along with its third-quarter results.
Looking forward, the telecommunication company expects fiscal 2009 revenues between $615 million and $625 million, and adjusted EBITDA of approximately $200 million. GCI said that it would no longer be providing quarterly guidance but will instead discuss whether the company is on track to meet its annual guidance.
General Communication closed Wednesday's regular trading at $4.03, down $0.12 or 2.89%, on a volume of 126,241 shares on the Nasdaq.
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