FairPoint suffers $22.7 million Q2 net loss
FairPoint Communications Inc., a major telecommunications provider and employer in Maine, posted a $22.7 million net loss for the second quarter, compared with a $43.1 million loss for the same period a year ago. The loss follows a $32.2 million net loss for the first quarter.
In a news release accompanying its second quarter earnings statement, FairPoint officials said the company continued to lose telephone customers, resulting in a decline of $6.8 million in revenue from that service compared to a year ago. Data and Internet services, however, increased $4 million for the quarter.
Meanwhile, contract negotiations between FairPoint and its unions remained stalled, according to the Burlington Free Press in Vermont. Contracts with unions representing approximately 1,700 of FairPoint's 2,550 northern New England employees expired at midnight on Aug. 2. With no strike as yet called by the unions, work will continue under most terms of the expired contracts.
FairPoint (NASDAQ: FRP) has about 3,160 employees in 17 states, including 700 in Maine. It provides landline telephone, Internet and other telecommunications services in 18 states. Its largest holdings are in Maine, New Hampshire and Vermont, where it has about 1.1 million access lines. FairPoint bought Verizon's land lines in northern New England in 2008 for $2.3 billion, and filed for bankruptcy in the fall of 2009. The company emerged from bankruptcy in January 2012 after shedding about $1.7 billion in debt.
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