Uniti Group Swings Back to Q2 Profit


Uniti Group Swings Back to Q2 Profit
(Uniti)

Uniti Group Inc. of Little Rock announced Thursday second-quarter income of $49.6 million, or 20 cents per share, swinging back from a loss of $598 million, or $3.06 cents per share, the same quarter of 2020.

Second-quarter revenue for the publicly traded real estate investment trust (Nasdaq: UNIT) and Windstream spinoff was $268 million, up slightly from $266 million.

"Uniti delivered another strong quarter of results including consolidated bookings during the quarter of approximately $1 million in monthly recurring revenue, representing an increase of over 80% from consolidated bookings in the first quarter of 2021, and industry leading monthly churn of 0.2%," President and CEO Kenny Gunderman said in a news release. "Demand for our fiber infrastructure remains very strong and is fueled by the continued virtualization of our society.

"Given the tailwinds we are seeing for more investment needed by our customers to enable 5G networks, fiber to the home, and greater cloud-based connectivity, we expect these strong demand trends will continue for the foreseeable future."

Quarterly income included a $28.1 million gain from the sale of Uniti Fiber's Northeast operations and from certain dark fiber contracts relating to its Everstream transaction. 

Uniti announced in November that it would enter into two 20-year lease agreements with Everstream Solutions LLC of Cleveland, Ohio. Everstream, which is majority owned by AMP Capital of Sydney, Australia, will lease Uniti-owned fiber that spans eight states and covers more than 10,000 route miles and 220,000 fiber strand miles for about $3 million per year.

Uniti also announced that it would sell a portion of its Northeast operations and certain dark fiber contracts to Everstream for total cash consideration of $135 million. 

Second-quarter revenue for the company's Uniti Fiber segment was $72.1 million, down from $79.1 million in the same quarter of 2020.

Revenue for its Uniti Leasing segment was $196.1 million, up from $185.3 million. During the quarter, Uniti Leasing spent $50 million to build more than 1,500 miles of fiber infrastructure.