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Windstream Cuts Losses Post EarthLink Buy

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Windstream on Thursday reported a $111 million loss for the first quarter of 2017 compared to a $232 million loss for the same quarter last year.

Revenue was static for the first quarter ($1.36 billion) compared to the same quarter in 2016 ($1.37 billion). The first-quarter results include EarthLink operations from Feb. 27 to March 31.

Windstream's Tony ThomasDuring the quarter, Windstream completed its $1.1 billion purchase of EarthLink. Also, the company announced it is acquiring Broadview Networks, a provider of cloud-based UC to SMBs, in an all-cash transaction valued at $227.5 million.

“Windstream’s focused operational strategy and targeted network investments continue to drive improvements to our business and create value for our shareholders,” said Tony Thomas, Windstream’s president and CEO. “Additionally, our recent strategic transactions with EarthLink and Broadview Networks will expand our capabilities to provide cutting edge technology solutions to customers.”

Service revenue was $1.34 billion, on par with the year-ago quarter. Consumer and small business ILEC service revenues were $391 million, down 1.5 percent from a year ago.

Wholesale service revenue was $158 million, down 3.5 percent year over year. Enterprise service revenue was $516 million, up 5 percent from the year-ago quarter.{ad}

CLEC consumer and small business service revenue was $140 million, up 9 percent.

“Our first-quarter results were in line with our expectations, and we are making solid progress on achieving our 2017 goals,” Thomas said. “The integration with EarthLink is off to an excellent start and our synergy plans remain on track. We saw improved ILEC consumer revenue and broadband trends during the quarter. Enterprise contribution margin also grew year over year.”


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