- Despite some success with its Fioptics offering -- record-high activations and 34% higher revenue in Q4 -- Cincinnati Bell (CBB +0.3%) will slow its fiber-to-the-home expansion next year as penetration grows.
- The build is "100% success-based," says CEO Ted Torbeck, "and as long as we see the returns that are appropriate we're going to continue to build ... We anticipate by the end of the year we'll be somewhere over 60 percent and we fully anticipate that we'll be getting close to the upper range where in 2017 our build will decline significantly."
- Costs are also growing as the build gets more complete. Once margins drop far enough, the company will stop building, Torbeck says.
- The company's Fioptics video subscribers grew by 5,600 in Q4 to a total of 114,400 (25% higher than 2014's end). Fioptics Internet subscribers were up 35% to a record 153,700.
- For the full year, the company passed 97,000 units with Fioptics, and the suite of products is now available to 432,000 customers, "53% of greater Cincinnati."
- Previously: Cincinnati Bell -9.3% despite Q4 revenue beat (Feb. 18 2016)
- Related: Cincinnati Bell's (NYSE:CBB) CEO Ted Torbeck on Q4 2015 Results - Earnings Call Transcript (Feb. 18 2016)