Revenues for the second quarter increased $14.1 million or 19.7 percent to $85.5 million and EBITDA increased by $6.0 million or 37.3 percent to $22.1 million when compared to the prior year. Revenues and EBITDA for the second quarter increased by 10.5 percent and 12.2 percent respectively, in comparison to the first quarter of 2001, excluding revenue and EBITDA of $19.5 million and $7.3 million respectively from the sale of fiber capacity which occurred in the first quarter.
The second quarter of 2001 is our sixth consecutive quarter of record high revenue and EBITDA, said Ron Duncan, GCI president. In addition, we substantially increased the size of our network facilities with the acquisition of the 800 mile fiber optic system supporting the Trans-Alaska Pipeline System and with the announcement of an agreement to purchase the Roger’s cable TV properties passing an additional 10,000 homes.
The company’s local services business added almost 4,000 access lines during the second quarter, including more than 1,500 lines in Fairbanks, and now has almost 69,000 total access lines in service. GCI has an estimated 35 percent market share in the Anchorage area and an estimated 4 percent market share in the Fairbanks area. GCI’s statewide Internet platform serves approximately 65,500 customers. Internet customer growth slowed for the second quarter due to seasonal effects that were previously offset by rapid customer growth.
Approximately 19,600 Internet customers are using GCI cable modem service, an increase of approximately 1,100 customers over the first quarter. GCI cable television services now pass 179,700 homes and serve 123,000 basic subscribers. Basic subscribers increased sequentially by approximately 2,000 subscribers from the first quarter of 2001. More than 18,000 cable subscribers in Anchorage and Fairbanks are using GCI digital service.
The second quarter 2001 net income is expected to be $0.2 million or $0.00 per share on a diluted basis. The second quarter 2001 net income of $0.00 per share compares to a loss of $3.5 million or $(0.08) per share for the second quarter of 2000.
For the six-months ended June 30, 2001, GCI’s revenues and EBITDA are expected to total $182.5 million and $49.1 million respectively. Revenues and EBITDA increased approximately 16.7 percent and 39.3 percent respectively, when compared to the prior six- months, excluding $19.5 million in revenue and $7.3 million in EBITDA from the sale of fiber capacity which occurred in the first quarter of 2001. GCI is expecting to report net income of $2.6 million or $0.04 per share on a diluted basis for the six-month ending June 30, 2001. The 2001 expected net income compares to a net loss of $9.0 million or $(0.19) per share for the same six-month period ending June 30, 2000.
The expected second quarter 2001 revenues of $85.5 million and EBITDA of $22.1 million compares to the company’s guidance for second quarter 2001 revenue of $78 million to $80 million and EBITDA of more than $20 million.
