Consolidated Communications Reports Revenue Decline, Reduced Losses in Q3 2024

Consolidated Communications Holdings, Inc. reported a decline in net revenues for the third quarter and the first nine months of 2024, with revenues of $271.1 million for the three months ended September 30, 2024, down 4% from $283.6 million in the same period of 2023. For the nine months, revenues decreased by 2% to $814.5 million from $834.9 million year-over-year. The decrease in revenue was attributed to a decline in voice services, which saw a 15% reduction in total voice connections, and the discontinuation of video services as part of the company's shift towards a fiber-first strategy.

Despite the revenue decline, the company reported a significant reduction in losses. The net loss for the third quarter was $49.0 million, a decrease of 15% from $57.8 million in the prior year. For the nine months, the net loss was $139.2 million, down 31% from $202.8 million in 2023. Losses attributable to common shareholders also decreased, reflecting improved operational efficiency and cost management.

Operating expenses decreased by 8% to $289.1 million for the third quarter and by 12% to $860.4 million for the nine months, driven by reductions in costs associated with services and products, as well as workforce reductions initiated in 2023. The company recognized severance costs of $10.4 million in the third quarter, down from $16.2 million in the same period last year.

Consolidated Communications has been focusing on expanding its fiber infrastructure, with plans to upgrade approximately 150,000 homes and small businesses in 2024. The company reported an increase in consumer broadband revenues, which rose by 10% to $82.4 million in the third quarter, and by 14% to $243.7 million for the nine months, driven by price increases and a growing number of subscribers opting for higher-speed services.

Strategically, the company entered into a merger agreement with Condor Holdings LLC, which is expected to close in late Q4 2024 or early Q1 2025. Upon completion, shareholders will receive $4.70 per share in cash. The merger has received majority approval from stockholders and is part of a broader strategy to enhance operational capabilities and financial stability.

As of September 30, 2024, total assets increased to $3.7 billion, while total liabilities rose to $3.1 billion, reflecting increased long-term debt and finance lease obligations. The company’s cash and cash equivalents stood at $44.4 million, with a working capital deficit of $18.2 million. The company anticipates that cash flows from operations will be sufficient to meet its financial obligations over the next twelve months.