The national metro fiber operator TW Telecom (NASDAQ:TWTC, news, filings) reported its Q2 earnings after the market closed, with its conference call on tap for tomorrow. Revenues and earnings per share were each a bit lighter than I expected, but still within the usual error bars. Here's a quick table in context of the prior four quarters:
|($ in millions)||Q2/11||Q3/11||Q4/11||Q1/12||Q2/12|
|- Data & Internet Services||158.2||164.7||171.6||176.8||182.5|
|- Network Services||88.9||86.9||85.4||84.8||83.0|
|- Voice Services||83.6||85.2||86.7||89.6||91.0|
|- Intercarrier Compensation||8.7||7.7||7.6||7.6||8.0|
|Earnings per share||0.09||0.10||0.11||0.13||0.13|
|On-net buildings added||569||561||566||467||462
|Free Cash Flow||16.5||23.2||25.6||37.3||37.7
Voice revenues continued their recent strength, while network revenues took the brunt of some churn from a large customer and some transport repricing. Data and internet services grew as always, but probably at a slightly slower pace than analysts had hoped. Overall, churn was in the usual ballpark.
tw telecom added another 462 buildings to its on-net footprint to reach 16,367 -- not quite keeping pace with last year but still far and away the fastest among the competitive operators. Sales headcount dipped below 550 for the first time in quite a while, I look forward to more color on that. Modified EBITDA margins grew slightly to 36.8%, edging toward 37% again.