Cincinnati Bell Q3 Profit Up, Reaffirms FY09 Revenue Outlook

11/4/2009 4:07 PM ET

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(RTTNews) - Wednesday, Cincinnati Bell Inc. (CBB: News ) reported a higher profit for the third quarter despite a decline in revenue. The company also reaffirmed its revenue guidance for the full year.

Cincinnati Bell's third quarter net income applicable to common shareholders edged up to $25.1 million or $0.12 per share from $24.0 million or $0.10 per share in the year ago period.

In the current quarter, the company reported adjusted net income applicable to common shareholders of $23.9 million or $0.11 per share compared to $24.5 million or $0.10 million in the previous year quarter.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude one-time items.

The Cincinnati, Ohio-based company's total revenue for the quarter was $337.7 million, down 3% from $346.5 million in the same quarter last year. Analysts expected revenues of $329.10 million for the quarter.

Wireline revenue totaled $190.9 million, compared to $200.6 million last year, while wireless revenue declined to $77.7 million from $80.8 million. Revenue from Technology Solutions increased to $78.4 million from $73.3 million a year ago.

The company reported additional 6000 smartphone subscribers in the third quarter.

Operating income declined 8% to $73.2 million from $79.8 million in the comparable quarter last year, primarily due to a $5 million loss on sale of wireless spectrum.

For the nine months, net income applicable to common shareholders surged to $75.0 million or $0.34 per share from $57.3 million or $0.23 per share last year. Adjusted net income applicable to common shareholders declined to $70.2 million or $0.32 per share from $73.0 million or $0.30 per share last year. Year-to-date revenue was $990.8 million, down from $1.05 billion in the year ago period.

Looking forward, the company reiterated its revenue guidance for the fiscal 2009 to range between $1.3 billion and $1.4 billion. Analysts estimate revenues of $1.31 billion for the full year.

CBB is currently trading at $2.92, down $0.14 or 4.58% on a volume of 0.60 million shares on the NYSE.