nTelos Holdings Corp. today operating results for its third quarter ended Sept. 30. Operating revenues for the third quarter 2013 increased 14.4 percent to $130.9 million, compared to $114.5 million for the same period in 2012. Subscriber revenues increased 14.4 percent to $73.7 million for the third quarter 2013, compared to $64.4 million for the third quarter 2012.
Key to the successful quarter was the resolution of disputes with Sprint related to the companies’ Strategic Network Alliance. Under the terms of the SNA, nTelos provides exclusive service on a wholesale basis to Sprint’s customers in portions of western Virginia and West Virginia. The settlement resolves a disagreement relating to the data rate reset that began in the fourth quarter 2011, and also unrelated historical billing disputes that were raised in the third quarter 2012.
“We believe the settlement ensures that our wholesale revenues will continue at levels consistent with recent quarters and, perhaps more importantly, establishes a foundation from which we will look to extend and expand our relationship,” said James A. Hyde, CEO of nTelos Holdings Corp. “Meantime, we continue to be pleased with the growth of our retail business as we increased subscribers for the seventh straight quarter.”
Wholesale and other revenue derived primarily from the Strategic Network Alliance with Sprint were $50.6 million for the third quarter 2013 (inclusive of $9.0 million related to the Sprint settlement), compared to $43.3 million for the third quarter 2012.
More highlights from the third quarter report
Retail revenues, which include subscriber and equipment revenue, increased 12.8 percent to $80.3 million for the third quarter 2013, compared to $71.1 million for the third quarter 2012.
Total subscribers were 457,100 as of Sept. 30, compared to 430,300 for the same period of 2012. Total subscriber gross additions for the third quarter were 44,500, compared to 42,400 for the same period of 2012.
Total net subscriber additions for the third quarter were 2,300, compared to 5,500 for the same period of 2012.
Look to the future
“Looking ahead, we are implementing a number of initiatives that we expect will enhance our service offerings and value proposition,” Hyde said. “Our LTE roll out remains on schedule and we expect to launch the service in our first markets in the coming weeks. As we upgrade our network, we are optimizing our rate plans and expanding our smartphone lineup to better meet our customers’ needs and further support the resurgence of our retail business.
“Finally, as we announced last month, we are expanding our pilot program with DISH Network to provide fixed-mobile broadband services across larger portions of our footprint, with Phase II coverage of approximately 500,000 residents.
Overall, we are excited about the direction of our business and will continue to take definitive actions to drive value for all key stakeholders.”