Cogent Communications Holdings, Inc. reported total service revenue of $257.2 million for the three months ended September 30, 2024. This figure represents a decrease of 1.2% from the previous quarter and a 6.6% decline compared to the same period in 2023. The revenue was impacted by a reduction in the Commercial Agreement with T-Mobile, which contributed $4.1 million, and the termination of an uneconomic resale agreement that previously generated $5.1 million per quarter.
Breaking down the revenue, on-net revenue was $136.5 million, a 3.0% sequential decrease, while off-net revenue was $111.3 million, a slight 0.1% sequential decrease. Wavelength revenue, a key growth area, surged by 45.8% sequentially to $5.3 million and increased by 76.7% year-over-year, demonstrating significant traction. Non-core revenue continued its planned decline, reaching $4.1 million.
The company reported a GAAP gross profit of $9.8 million, with a GAAP gross margin of 3.8%. EBITDA as adjusted, which accounts for Sprint acquisition costs and T-Mobile IP Transit Services Agreement payments, was $60.9 million. Cogent also announced a net loss per share of $(1.33) for the quarter, and its Board approved a regular quarterly dividend increase to $0.995 per share, payable on December 6, 2024.
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