Level 3 Communications Inc. posted a wider loss than analysts had anticipated as its European business suffered.
The second-quarter financial results hurt its stock price. Shares of Level 3 were down late this morning 13.53 percent, trading at $17.66 on the New York Stock Exchange.
The Colorado-based network services provider reported a net loss of $62 million, or 29 cents per share, on revenues of $1.586 billion. Analysts surveyed by Thomson Reuters had projected a per-share loss of 27 cents.
Level 3 said its Core Network Services revenue grew nearly 1 percent sequentially to $1.386 billion.
“Our North America and Latin America businesses performed well this quarter, with CNS revenue growth of 1.1 percent and 2.3 percent on a constant currency basis, respectively,” said Sunit Patel, executive vice president and CFO of Level 3. “Our EMEA business performance was weaker, primarily due to the expected declines in U.K. government revenue.”
“Across the business, we saw strong pickup in orders during the second quarter, which should increase the CNS revenue growth rate in the second half of the year,” Patel added.