HONOLULU (AP) — Hawaiian Telcom says its profits were down nearly 18 percent in the second quarter as it wrote down investments in its broadband network.
The Honolulu-based utility said Thursday it earned $5.5 million in the quarter ending June 30.
The company said it spent $41.2 million in the first six months of the year to upgrade its infrastructure and expand the number of households that can get its video offerings.
The utility had nearly $95 million in revenue for the quarter, compared with just under $101 million during the same quarter one year ago, company officials said.
Hawaiian Telcom said it saw a 6 percent decline in access lines but grew its business in video, high-speed Internet and business data. Last year's quarter also included a significant sale of equipment to a government customer.
Consumer use of its old services like landline telephones is going down, but its other services are creating a turning point for the company, officials said. Its consumer revenue was $34 million, down 1 percent from the same quarter last year.
Eric Yeaman, Hawaiian Telcom's chief executive, said he is pleased with that momentum and that the company has captured 12 percent of roughly 50,000 households able to get its video service.
"After only a year in the market, we are already reaching subscriber penetration to over 12 percent of the approximately 50,000 household-enabled footprint," Yeaman said.
The company's shares closed at $18.62 on Thursday, up $1.20, 22 percent.