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CenturyLink Profit Up, While Windstream Reports Loss

Earnings

CenturyLink is reporting a big jump in profit, while Windstream reported a net loss for the second quarter of 2018 compared to the same quarter last year.

CenturyLink's Jeff Storey

CenturyLink’s Jeff Storey

CenturyLink’s revenue was down just a bit ($5.9 billion) for the quarter, compared to $6 billion for the year-ago quarter. Profit, however, was $292 million compared to $69 million a year ago. The earnings beat analysts’ estimates.

“In addition to the integration efforts associated with the acquisition of Level 3, we are also focused on transforming to more efficient operating models beyond the capture of synergies,” said Jeff Storey, CenturyLink’s president and CEO. “Integration is about bringing the two companies together. Transformation is about enhancing our business for effectiveness, cost efficiency, and customer experience to move us to where we want to be as a company.”

CenturyLink’s business revenue was $4.36 billion for the second quarter, down from $4.42 billion for the year-ago quarter. Enterprise revenue was flat at $1.3 billion, and medium and small business revenue was $884 million, down from $893 million.

IP and data services revenue totaled $1.83 billion, up 2 percent, and voice and collaboration revenue was $1.65 billion, down 8 percent. Transport and infrastructure totaled $2 billion, down 2 percent, while IT and managed services totaled $162 million, up 5 percent.

For its second quarter, Windstream reported $1.44 billion in revenue and sales, down from $1.5 billion for the year-ago quarter. The company reported a net loss of $93.7 million, compared to a net loss of $68.1 million.

Windstream topped revenue estimates.

Windstream's Tony Thomas

Windstream’s Tony Thomas

“Our enterprise segment continues to see improved results as our focus on SD-WAN, unified communications-as-a-service (UCaaS) and on-net sales have driven improving revenue trends and margins,” said Tony Thomas, Windstream’s president and CEO. “Windstream is now the largest SD-WAN provider in the country with more than 1,000 customers in over 12,000 locations nationwide. Sales of strategic products accelerated to over 50 percent of enterprise sales for the quarter.”

Service revenue was $1.42 billion in the quarter, down from $1.46 billion for the year-ago quarter. Consumer and small business ILEC service revenues were $466 million, a 6 percent decrease from the year-ago quarter.

Enterprise service revenue was $730 million in the second quarter, up from $723 million for the year-ago quarter.

Wholesale service revenue was $182 million, down from $196 million a year ago.

CLEC consumer service revenue, which mostly consists of EarthLink’s consumer internet business, was $46 million, down 10 percent from the year-ago quarter.


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