CenturyLink on Wednesday reported higher revenue for the first quarter of this year, while profit fell compared to the same quarter in 2017.
According to its latest quarterly earnings report, which includes Level 3 Communications, profit was $115 million, compared to $123 million for the year-ago quarter. Total revenue was $5.94 billion, up from $4.21 billion.
CenturyLink completed its acquisition of Level 3 last November. Last week, CenturyLink confirmed it is laying off hundreds more of its workers, or 2 percent of its workforce, as a result of the acquisition, increased efficiencies and automation.
“CenturyLink achieved solid results for first quarter 2018, the first full quarter of operations following the acquisition of Level 3,” said Glen Post III, CenturyLink’s CEO. “Now positioned as one of the world’s leading network providers, we believe we have significant opportunities to grow our business and drive long-term shareholder value.”
CenturyLink’s business revenue was $4.38 billion for the first quarter, down slightly from $4.42 billion for the year-ago quarter. Enterprise revenue was $1.3 billion, up 2 percent, and medium and small business revenue was $860 million, down 5 percent.
IP and data services revenue totaled $1.84 billion, up 1 percent, and voice and collaboration revenue was $1.63 billion, down 10 percent. Transport and infrastructure totaled $2.1 billion, up 1 percent, while IT and managed services totaled $162 million, up 6 percent.
On Jan. 1, CenturyLink adopted the new revenue recognition standard for how companies recognize revenue from contracts with customers. Overall, the adoption negatively affected total revenue by about $15 million, with $10 million in consumer and $5 million in business. Within business, the enterprise business unit was negatively affected by about $11 million, slightly offset by a $4 million benefit to medium and small-business revenues. Its wholesale and indirect, and international and global markets business units were affected minimally.
“We are focused on our sales force integration and driving profitable revenue growth while improving our customer experience,” said Jeff Storey, CenturyLink’s president and COO. “Our integration efforts to date are leading to the synergies we expected and helping us move toward sustainable improved profitability and cash flow generation.”