Nelnet 2nd quarter earnings down

Nelnet's second-quarter earnings were lower than a year ago, but they met analyst expectations.

The Lincoln-based student finance company said Tuesday that it earned $45.8 million, or $1.08 per share, for the second quarter, compared with $48 million, or $1.13 per share, for the same period in 2016.

That met the consensus of financial analysts, who predicted earnings of $1.08 a share.

Those results exclude the effects of derivative market value and foreign currency transaction adjustments as well as variation margin settlements. Including those items under generally accepted accounting principles, Nelnet earned net income of $28.7 million, or 68 cents per share, in the second quarter, compared with $26.2 million, or 61 cents a share, in the second quarter of 2016.

"We are pleased with our operating results for the quarter and are excited by the opportunities we have in the future to grow and diversify our core fee-based businesses," Jeff Noordhoek, chief executive officer of Nelnet, said in a news release.

The company saw revenue increase year over year in three of its four operating segments, with the only drop coming in its asset generation and management segment.

As it has since buying Allo in December 2015, Nelnet continued to spend heavily to build out a fiber-optic network in Lincoln,

The company said it has spent $49 million year to date on capital projects for Allo. That number is separate from operating costs, which have increased with the number of customers.

Despite increasing revenue to $5.7 million in the second quarter, up from $4.5 million a year ago, Allo saw its net loss balloon to $3.6 million, up from $700,000 a year ago.

Nelnet said Allo had nearly 12,500 customers as of June 30, a 50 percent increase over a year ago. It also is now available to nearly 46,000 households and businesses, up from less than 31,000 at the end of 2017.

Noordhoek said in the news release he was excited by the "positive reception of Allo's fiber communication products."

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