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| Updated: 12:20 AM

Quarter's profits up 40 percent, GCI says

$2.6 MILLION: Customers pick more expensive services.

Anchorage telecom company GCI reported $2.6 million in second-quarter profits, up 40 percent from the April-June period of last year.

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Revenue for the company reached a record $149 million during the quarter, up 4 percent, GCI said.

GCI provides local, long distance and wireless phone; cable TV, and Internet-access services to consumers and businesses statewide.

The company showed particular strength in its consumer services, which accounted for $73.4 million in revenue, about half of its total, according to financial statements GCI released.

Consumer wireless revenue reached $21.1 million during the second quarter, up 51 percent from a year earlier. The main reason for the jump was that GCI had 103,600 consumer wireless lines in service as of June 30, about 27,000 more than a year earlier.

Consumer cable TV-related revenue totaled $27.1 million during the quarter, up 6 percent from the same period of last year. The growth was partly because of customers buying more expensive services, such as high-definition or digital TV, and from their renting more high-definition digital recorders. GCI reported it had 129,700 basic cable subscribers, down less than 1 percent, while it had 74,400 digital converter boxes in use, up 31 percent.

Among its business services, revenue totaled $31.1 million, up 13 percent from a year earlier.

Ron Duncan, GCI president, said the slowing Alaska economy will make hitting the company's cash-flow target "more challenging." But, he said, "we're on plan at the halfway point in the year." GCI is seeing "slowing growth from our commercial customers. Price pressures in the market are also increasing," he said.

For the first six months of this year, GCI's profit reached $2.9 million, up 29 percent from the same period of last year. Revenue was $297 million, up 7 percent.

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