Atlantic Tele-Network, Inc. (ATNI) Tops Q2 EPS by 27c

Atlantic Tele-Network, Inc. (NASDAQ: ATNI) reported Q2 EPS of $0.72, $0.27 better than the analyst estimate of $0.45. Revenue for the quarter came in at $83.3 million versus the consensus estimate of $69.95 million.

Second Quarter 2014 Operating Highlights

U.S. Wireless

U.S. wireless revenues primarily consist of voice and data revenues from the Company's wholesale roaming operations. Total revenues from the U.S. wireless business were $37.5 million in the second quarter of 2014, an increase of 41% from the $26.6 million reported in the second quarter of 2013. This strong revenue performance was driven by increased data traffic across the Company's expanded domestic wireless network. Wholesale data prices are expected to decline later in 2014, which should result in a significantly lower rate of year-on-year revenue growth in coming quarters, even as data traffic and our network reach and capacity continue to grow. Data revenues accounted for 70% of U.S. wireless revenues in the 2014 second quarter, compared to 49% in the similar year-ago period. The Company ended the second quarter with 654 wholesale-only base stations in service compared to 572 at the end of last year's second quarter.

International Wireless

International wireless revenues include retail and wholesale voice and data wireless revenues from international operations in Bermuda and the Caribbean. International wireless revenues were $22.4 million, an increase of 3% over the $21.8 million reported in the second quarter of 2013, due to retail revenue growth in Guyana and in the Company's Island Wireless segment. This growth was offset in part by lower wholesale roaming revenues in many of our Island properties resulting from anticipated rate declines. We expect wholesale revenues to continue to decline in our international markets over time, while retail revenues continue to grow.

Wireline

Wireline revenues are generated by the Company's wireline operations in Guyana, including international telephone calls into and out of that country, by its integrated voice and data and wholesale transport operations in New England and New York State, and by its U.S. based wholesale long-distance voice services. Wireline revenues were $21.3 million, a 2% increase from the $20.9 million reported in the second quarter of 2013. The increase was primarily a result of higher wholesale long-distance voice service revenue, as well as increased domestic wholesale transport operations. Consistent with the trend of the past few quarters, in Guyana, increased data revenue was offset by declines in local and international voice revenue. Lower international voice revenue in Guyana coupled with increased operating expenses caused a significant year-on-year decline in Adjusted EBITDA in our International Integrated Telephony segment in the second quarter.

For earnings history and earnings-related data on Atlantic Tele-Network, Inc. (ATNI) click here.

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