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CenturyLink Reports Higher Revenue, Profit for Q4 Post Level 3 Acquisition

Earnings

CenturyLink reported higher profit and revenue for 2017’s fourth quarter, when it completed its acquisition of Level 3 Communications, compared to the same quarter in 2016.

According to consolidated earnings, which includes two months of Level 3’s financial performance, profit was $1.1 billion, compared to $42 million for the year-ago quarter. Operating revenues totaled $5.32 billion, up from $4.29 billion in the fourth quarter of 2016.

For all of 2017, profit was $1.39 billion, compared to $626 million, and operating revenues totaled $17.6 billion compared to $17.4 billion for 2016.

Fourth-quarter special items included a recognized tax benefit of $1.1 billion from the enactment of President Trump’s tax law, along with $222 million in acquisition and integration-related expenses.

“2017 was a year of significant transformation for CenturyLink,” said Glen Post III, CenturyLink’s CEO. “The sale of our data centers and colocation business followed by the acquisition of Level 3 Communications positions CenturyLink as a leading global networking company. This strategic combination brings significant scale, enhances our products and services portfolio, and improves our long-term financial flexibility. We are focused on the successful integration of our businesses and improving our customer experience through simplification and automation while achieving our targeted $975 million in annualized run-rate cash savings.”

CenturyLink’s business revenue was $3.73 billion for the fourth quarter and $11.2 billion for 2017, compared to $2.63 billion and $10.7 billion for the fourth quarter and full-year 2016, respectively.

Consumer-segment revenue was $1.4 billion for the fourth quarter and $5.7 billion for 2017, compared to $1.48 billion and $6 billion for the fourth quarter and full-year 2016, respectively.

In connection with its acquisition of Level 3, CenturyLink implemented a new organization structure and began managing its operations in two segments: business and consumer. The consumer segment remains unchanged while the business segment includes the legacy CenturyLink enterprise-segment operations and the legacy Level 3 operations.

“With this combination, CenturyLink is now better positioned to meet the needs of our customers and drive long-term shareholder return,” said Jeff Storey, CenturyLink’s president and COO. “We have organized and integrated our sales, operations and service teams to meet the specific needs of our customers — from consumers to small businesses to the largest global enterprises in the world. We are continuing to invest to meet the needs of our customers and to provide them with an improved digital experience.”


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