Windstream Reports Losses for Q4, Full 2016

Windstream on Wednesday reported a $383.5 million loss for 2016, including an $86.9 million loss for the fourth quarter.

That compares to a $27.4 million profit for 2015, and $140.5 million profit during the fourth quarter of that year.

Revenue totaled $5.38 billion for 2016, including $1.3 billion for the fourth quarter, compared to $5.76 billion for 2015 and $1.43 billion for the fourth quarter of that year.

This week, Windstream completed its $1.1 billion purchase of EarthLink. The two service providers announced their plans to merge in November after rumors swirled about a potential deal and both companies reported decreased third-quarter earnings.

“We grew enterprise service revenue for the year and significantly expanded enterprise contribution margin by $78 million, or 32 percent,” said Tony Thomas, Windstream’s president and CEO. “We expanded the availability of premium broadband speeds and rolled out 1 Gigabit service in four markets, which led to improved consumer trends. We expanded our metro fiber network and fixed wireless service in key cities and extended our fiber transport network throughout the western United States to provide increased sales opportunities. Additionally, we laid the groundwork for the launch earlier this year of software-defined wide area network solutions, or SD-WAN, a technology that will transform how businesses design and manage their networks.”{ad}

Service revenue was $1.29 billion in the fourth quarter, down from $1.39 billion for the year-ago quarter. Consumer and small business ILEC service revenues were $392 million, a 1 percent decrease from the year-ago quarter.

Wholesale service revenue was $153 million, an 11 percent decrease year over year. Enterprise service revenue was $486 million, down 2 percent from the year-ago quarter.

Small business CLEC service revenue was $111 million, down 16 percent from the year-ago quarter.

For 2017, Windstream expects total service revenue declines to be similar to full-year 2016 trends. Adjusted capital expenditures are expected to be between $790 million and $840 million.

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