FairPoint loses $32.2M in first quarter
FairPoint Communications, a major telecommunications provider and employer in Maine, posted a $32.2 million net loss for its first quarter in 2014 from last year.
The Portland Press Herald reported that the company faces challenges to reach profitability this year as it grapples with controversial labor contract negotiations, a delay to receive a $67 million subsidy from Maine ratepayers and a continuing decline of telephone customers.
More customers than expected took advantage of discounts offered in a customer-retention marketing plan, resulting in a revenue shortfall of $1.58 million, the Charlotte, N.C.-based company said at its annual shareholders meeting on Monday.
FairPoint’s total first-quarter revenue was $230.6 million. The total first-quarter revenue in 2013 was $235.5 million. The company had a net loss of $47.5 million in 2013’s first quarter, but made a $6.1 million profit in the fourth quarter.
The company reported a 6.8% loss of its customers from last year’s first quarter, which is a smaller decline than its 7.8% loss from the same period between 2012 and 2013.
Earlier this month, a bill to increase scrutiny of FairPoint’s proposed $67 million rate increase passed into law after Maine lawmakers overrode Gov. Paul LePage’s veto of the measure. The law will give the state Legislature the final stamp of approval on such a proposal after the Maine Public Utilities Commission issues a decision on it.
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