Warwick Valley Telephone Company (WWVY, Financial) filed Quarterly Report for the period ended 2012-06-30.
Warwick Valley Telephone Company has a market cap of $80 million; its shares were traded at around $13.9 with and P/S ratio of 3.1. The dividend yield of Warwick Valley Telephone Company stocks is 7.8%.
Operating revenues for the three-month period ended June 30, 2012 increased $1,075 or 19% to $6,886 from $5,811 in the same period in 2011. This increase was due primarily to a 169% increase in revenues from our UC segment resulting from the addition of the operations of Alteva in August of 2011.
Revenues for our Telephone segment decreased $966, or 21% from $4,600 for the three-month period ended June 30, 2011 to $3,634 for the three-month period ended June 30, 2012. This decrease was primarily due to decreases in network access services of $348, or 18%, and DIRECTV revenue of $289, or 89%. The decrease in DIRECTV revenue was due to the termination of the National Rural Telecommunications Cooperative (“NRTC”) as of August 15, 2011. We no longer bill and collect for the monthly recurring revenue for NRTC and instead we now only receive a commission on DIRECTV sales and reimbursement for installations costs. The decrease in network access services during the second quarter of 2012 was mainly due to lower USF revenues of $218 due to recent FCC reforms of USF funding and lower billing to carriers of $110.
Revenues for our UC segment increased $3,885, or 147% from $2,641 for the six-month period ended June 30, 2011 to $6,526 for the six-month period ended June 30, 2012. This increase was primarily due to an increase in VoIP revenue of $4,528, or resulting from additional revenue from the operations of Alteva since its acquisition in August of 2011 offset by the decrease in wholesale carrier services of $743, or 73% resulting from lower usage from wholesale customers.
Revenues for our Telephone segment decreased $1,907, or 20% from $9,348 for the six-month period ended June 30, 2011 to $7,441 for the six-month period ended June 30, 2012. This decrease was primarily due to lower DIRECTV revenues of $493, 81% as a result of the termination of the National Rural Telecommunications Cooperative (“NRTC”) as of August 15, 2011. We no longer bill and collect for the monthly recurring revenue for NRTC and instead we now only receive a commission on DIRECTV sales and reimbursement for installations costs. Additional decreases were attributable to lower network access services revenue of $779, or 19% mainly due to lower USF revenues of due to recent FCC reforms of USF funding and lower billing to carriers due to a dispute with a local exchange carrier; decrease in long distance revenue of $241, or 26% primarily associated with customers switching to our promotional prices and lower usage; decrease in video revenue of $239, or 86% resulting from our exit of landline video services and a decrease in directory advertising of $72, or 15% mainly due to lower sales of yellow page advertising.
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Warwick Valley Telephone Company has a market cap of $80 million; its shares were traded at around $13.9 with and P/S ratio of 3.1. The dividend yield of Warwick Valley Telephone Company stocks is 7.8%.
Highlight of Business Operations:
Revenues increased $1,075 or 19% to $6,886 for the three months ended June 30, 2012, in comparison to $5,811 for the three months ended June 30, 2011. The increase in revenues resulted from a 169% increase in revenues from our UC segment that was caused by the impact of the Alteva transaction. During the three-month period ended June 30, 2012, we had a net loss of $228, compared to net loss of $240 for the three-month period ended June 30, 2011. This decrease of $12 in net loss was primarily attributable to the increase of $898 or 41% in income from equity method investment due to excess O-P distributions over income from equity to $3,096 for the three-month period ended June 30, 2012 compared to $2,198 for the three-month period ended June 30, 2011. This decrease was offset by the increase in our operating loss of $870 or 34% to $3,447 for the three-month period ended June 30, 2012 from an operating loss of $2,577 for the three-month period ended June 30, 2011.Operating revenues for the three-month period ended June 30, 2012 increased $1,075 or 19% to $6,886 from $5,811 in the same period in 2011. This increase was due primarily to a 169% increase in revenues from our UC segment resulting from the addition of the operations of Alteva in August of 2011.
Revenues for our Telephone segment decreased $966, or 21% from $4,600 for the three-month period ended June 30, 2011 to $3,634 for the three-month period ended June 30, 2012. This decrease was primarily due to decreases in network access services of $348, or 18%, and DIRECTV revenue of $289, or 89%. The decrease in DIRECTV revenue was due to the termination of the National Rural Telecommunications Cooperative (“NRTC”) as of August 15, 2011. We no longer bill and collect for the monthly recurring revenue for NRTC and instead we now only receive a commission on DIRECTV sales and reimbursement for installations costs. The decrease in network access services during the second quarter of 2012 was mainly due to lower USF revenues of $218 due to recent FCC reforms of USF funding and lower billing to carriers of $110.
Revenues for our UC segment increased $3,885, or 147% from $2,641 for the six-month period ended June 30, 2011 to $6,526 for the six-month period ended June 30, 2012. This increase was primarily due to an increase in VoIP revenue of $4,528, or resulting from additional revenue from the operations of Alteva since its acquisition in August of 2011 offset by the decrease in wholesale carrier services of $743, or 73% resulting from lower usage from wholesale customers.
Revenues for our Telephone segment decreased $1,907, or 20% from $9,348 for the six-month period ended June 30, 2011 to $7,441 for the six-month period ended June 30, 2012. This decrease was primarily due to lower DIRECTV revenues of $493, 81% as a result of the termination of the National Rural Telecommunications Cooperative (“NRTC”) as of August 15, 2011. We no longer bill and collect for the monthly recurring revenue for NRTC and instead we now only receive a commission on DIRECTV sales and reimbursement for installations costs. Additional decreases were attributable to lower network access services revenue of $779, or 19% mainly due to lower USF revenues of due to recent FCC reforms of USF funding and lower billing to carriers due to a dispute with a local exchange carrier; decrease in long distance revenue of $241, or 26% primarily associated with customers switching to our promotional prices and lower usage; decrease in video revenue of $239, or 86% resulting from our exit of landline video services and a decrease in directory advertising of $72, or 15% mainly due to lower sales of yellow page advertising.
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