Level 3 Slashes Losses, But Revenue Slips

Level 3 Communications is losing less money than it did a year ago.

In its quarterly earnings report released Wednesday, the communications giant said it lost $24 million (11 cents per share) in the second quarter. That compares to $62 million (29 cents per share) in Q2 2012.

Total revenue was off slightly from a year ago, coming in at $1.57 billion, down from $1.59 billion in the year-ago quarter. It was $1.58 billion in the first quarter of 2013. A decline in wholesale voice services was one reason for the drop.

Core network services revenue last quarter grew 2.4 percent year over year and 0.9 percent from the previous quarter. Enterprise core network services revenue was up 7.1 percent from a year ago, excluding U.K. government revenue.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $400 million excluding severance charges, or $387 million as reported. Adjusted EBITDA grew 12 percent year-over-year excluding severance charges in both periods.

” … We believe we might be closer to a point where expectations for the company are more closely aligned with the reality of the business than ever before,” said Canaccord Genuity analyst Greg Miller, ahead of the Level 3 earnings announcement. “Even so, given the slow recovery and continued cash burn, we continue to find it difficult to identify a positive catalyst for the shares.

Level 3 stock was up 2.6 percent in Wednesday morning trading, to $22.43, as of 12 p.m. ET.

Follow senior online managing editor @Craig_Galbraith on Twitter.

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