CenturyLink Profit, High-Bandwidth Data Revenue Rise

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CenturyLink on Wednesday reported a 37 percent increase in profit for its second quarter compared to the same quarter in 2015, along with a slight decrease in operating revenue.

Total operating revenue in the second quarter was $4.4 billion, compared to $4.42 billion for the year-ago quarter. Profit was $196 million compared to $143 million, exceeding analysts’ expectations.

“CenturyLink delivered solid second-quarter financial results with total operating revenues and core revenues in line with our guidance, and operating cash flow and adjusted diluted earnings per share that exceeded our previous guidance,” said Glen F. Post III, CenturyLink’s CEO and president. “Our new sales and marketing leadership team continues to refine our sales channels and associated go-to-market strategies for the business market, and continues to pivot toward higher-value bundled solutions for the consumer market. While second quarter consumer subscriber metrics were softer than anticipated, we expect to see an improvement in unit trends in the second half of the year.”{ad}

Business revenue was $2.6 billion in the second quarter, down 2.3 percent from the year-ago quarter, primarily due to a decline in legacy revenue — partially offset by 8 percent growth in high-bandwidth data revenue. Strategic revenue was $1.23 billion in the quarter, a 5 percent increase from a year ago, primarily due to the increased high-bandwidth data revenue being partially offset by lower hosting revenue.

Consumer revenue was $1.49 billion, a .6 percent decrease from the year-ago quarter, primarily due to a decline in legacy voice revenue partially offset by growth in broadband and Prism TV sales. Strategic revenue totaled $800 million in the quarter, a 5.5 percent increase from the year-ago quarter.

“We also are continuing to invest with a ‘network first’ focus on delivering higher broadband speeds and in the transformation and virtualization of our network infrastructure through the deployment of NFV4 and SDN5 technologies,” Post said. “We ended the quarter with more than 8.4 million addressable households and businesses with 40 Mbps or higher speeds, including 1.2 million gigabit passive optical network (GPON)-enabled addressable units. We expect to reach 11 million 40 Mbps or higher, including 2 million GPON-enabled addressable households and businesses, by year-end 2017.”

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