Lubbock, TX – March 9, 2011 – XFONE, Inc. (NYSE Amex and TASE: XFN) (“Xfone” or “the Company”) announces results for the three months and year ended December 31, 2010. As a consequence of the Company’s sale of its UK and Israeli Divisions, the results from those subsidiaries are reflected as discontinued operations for all periods presented.
Revenue from the Company’s Fiber-To-The-Premise (FTTP) business grew 24.9% to $10.1 million in the year ended December 31, 2010 as compared to approximately $8.1 million in the previous year. FTTP revenues represented 17.1% of total revenues for the 2010 fiscal year as compared to 13.2% of total revenues for fiscal 2009.
Consolidated revenues for the year ended December 31, 2010 were $58.9 million, a decrease of 4% compared to $61.4 million in 2009, related primarily to anticipated attrition in the residential customers and wholesale business of Xfone’s legacy non-FTTP business.
In the fourth quarter ended December 31, 2010, the Company had revenues of $2.8 million from its FTTP business, as compared to $2.1 million in the fourth quarter of 2009. FTTP revenues represented 18.7% of total revenues in the fourth quarter of 2010 as compared to 14.1% of total revenues in the fourth quarter of 2009. On a sequential basis, FTTP revenues showed an increase of 6.5% when compared to the third quarter of 2010.
Consolidated revenues for the fourth quarter of 2010 were $15.0 million, compared to consolidated revenues of $14.9 million in the fourth quarter of 2009.
The Company’s total number of FTTP customers as of December 31, 2010 was 5,777 compared to 3,842 FTTP customers as of December 31, 2009.
Following the close of the third quarter of 2010, Xfone began construction of its PRIDE Network in northwestern Texas. This project is almost entirely financed by $63.7 million in funds from the Federal Broadband Stimulus Program, of which 44.2% is in the form of a grant.
In September, Xfone was selected to receive an additional $36.2 million in Federal funding that will be used to further expand the PRIDE Network to communities in southern Louisiana, of which 49% is in the form of a grant. When completed, the addition of the combined Texas and Louisiana networks is expected to bring total company-wide FTTP passings to over 50,000.
EBITDAS (earnings before interest, taxes, depreciation, amortization and stock-based compensation) for the year ended December 31, 2010 was $7.2 million compared to EBITDAS of $6.4 million in 2009.
EBITDAS for the fourth quarter of 2010 was $2.0 million, up sequentially from $1.9 million in the third quarter of 2010 and up 27% from the fourth quarter of 2009. EBITDAS margin in the quarter ended December 31, 2010 was 13.3% compared to EBITDAS margin of 10.6% for the quarter ended December 31, 2009.