Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 03, 2018 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to the Consolidated Communications Holdings Incorporated First Quarter 2018 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to introduce your host for today's conference, Ms. Lisa Hood, Treasurer and Vice President of Investor Relations. You may begin.
Thank you, and good morning, everyone. We appreciate you joining us today for Consolidated Communications first quarter earnings call. On the call with me today are Bob Udell, President and Chief Executive Officer; and Steve Childers, Chief Financial Officer. After our prepared remarks, we will open the call up for questions. Please review the safe harbor provisions in our press release and in our SEC filings.
Today's discussion includes statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. A discussion of factors that may affect future results is contained in Consolidated's filings with the SEC, which are available on our website. Today's discussion will include certain non-GAAP financial measures. Our earnings release has been posted on the Investor Relations section of our website at consolidated.com. It includes reconciliations of these measures to our nearest GAAP equivalent.
And with that, I will turn the call over to Bob Udell.
Thank you, Lisa, and good morning, everyone, and thank you for joining Consolidated Communications first quarter call. We've had a busy start to 2018. Our plan and strategy of investing and expanding our fiber network is working, as we upgrade broadband speeds and enhanced product offerings, bringing more robust solutions to our customers. As examples of our execution, I'd like to begin by highlighting progress within our three customer channels.
First, within commercial and carrier channels, we have grown data in transport revenues 1.4% year-over-year. This was driven by a 4.5% growth in legacy Consolidated business, which is partially offset by declines within the FairPoint markets. We are demonstrating continued success in our legacy markets and are excited by the opportunity we see within the FairPoint markets as we execute on our proven playbook of investment and growth in data and transport revenues.
The commercial channel closed a number of strategic sales during the past quarter, including a 31 site library system in Minnesota and major land installation for a large non-profit in Maine, in several governmental, finance and educational deals across our combined footprint. These sales represent sizable monthly recurring revenues and contribute to revenue growth in Ethernet, cloud voice, and managed services.
In addition, we further enhanced our sales execution plans by completing the roll-out and training of our consultated value-based sales approach in all of our newly acquired FairPoint markets. This is an important step to position ourselves for future sales performance, and we are making good progress. As an example, our Metro Ethernet revenue on a combined basis has increased 7% year-over-year.
This quarter in our small business channel, we launched a new data and voice solution which we brand as BusinessOne. The BusinessOne product bundles are specifically