Windstream Revenues Up, Profit Down in Q3

By Craig Galbraith Comments
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Windstream said on Thursday that it recorded its best quarter-over-quarter revenue improvement ever in Q3 2012, but profit was down 44 percent from the same period last year.

The CLEC's quarterly revenue was $1.55 billion, up $15 million sequentially; yet net income fell from $78 million a year ago to $54 million this past quarter.

"Our business continues to perform well, and I am confident in our ability to deliver strong free cash flow long-term to support our [25-cent] dividend [announced Wednesday]," said Jeff Gardner, Windstream president and CEO. "The dividend is a key component of our investment thesis, and we believe it is the best way to provide returns to our shareholders."

Business-service revenue was $906 million – that was up 3 percent from the year-ago quarter. Revenues from data and integrated services were up 9 percent and carrier-service revenue jumped 3 percent.

The service provider said it added 6,000 new high-speed Internet customers between July 1 and Sept. 30.

The company's stock was down 7 percent on the earnings news as of 11 a.m. ET on Thursday.

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