Knology, Inc. (NASDAQ:KNOL) reported Wednesday stronger-than expected second-quarter earnings, as well as an agreement to purchase Sunflower Broadband for $165 million.
The provider of interactive communications posted net income of $7.6 million, or 21 cents a share, compared with $1.3 million, or 4 cents a share, in the same quarter last year, and landing ahead of average analyst estimates of 13 cents.
Revenue for the West Point, Georgia-based company was $113 million, up 4.7% from $108 million in the earlier-year period, and beating the Street’s view of $112 million.
Despite a drop in total connections, due to seasonally slow trends, the company saw revenue hikes in its core businesses that offset losses.
Knology CEO Rodger L. Johnson said he was “pleased” with both the financial and operating second quarter results.
“The core business is continuing to perform well in this challenging economic environment, and we continue to experience success with our fill-in investments and wireless backhaul opportunities,” he said. “We will stay focused on taking care of the customer and working hard to deliver increased shareholder value.”
Shares of Knology closed up more than 11% Wednesday amid the announcement of the strong second quarter earnings and its plan to buy Sunflower, a provider of residential and business video, voice and data services.
“We are very excited about the Sunflower transaction and what that transaction will mean to our business on a long term basis,” Johnson said.
The $165 million asset-based transaction is expected generate $51 million in revenues, for this year.