Level 3 Reports Increases In Core Network Services Revenue, Net Income for Q4

Level 3 Communications today reported $3.32 billion in net income for the fourth quarter compared to an $80 million loss for the same quarter in 2014.

Revenue was flat at $2.053 billion for the quarter, compared to $2.052 billion in the year ago quarter. Revenue totaled $8.2 billion for the full year compared to $8.1 billion for 2014.

Full-year net income totaled $3.43 billion compared to $149 million in 2014.

“Our 2015 results demonstrate Level 3’s solid execution and performance,” said Jeff Storey, Level 3’s president and CEO. “Demand for bandwidth remains strong and the proliferation of connected devices continues. These demand drivers are creating an enterprise networking opportunity that is well suited for the depth, scale and reach of Level 3’s global network and capabilities. We believe we are well positioned to continue to take enterprise market share.”{ad}

Core network services revenue in the fourth quarter totaled $1.57 billion in North America and $1.94 billion globally, compared to $1.5 billion and $1.9 billion for the year ago quarter. For the full year, core network services revenue totaled $6.2 billion in North America and $7.7 billion globally, compared to $5.86 billion and $7.46 billion.

The full year 2015 and the full year 2014 results include nine months and 12 months of results from the company’s Venezuelan subsidiary’s operations, respectively. The full year 2014 results are presented assuming the tw telecom acquisition took place on Jan. 1, 2014.

“As we look to 2016, from a revenue perspective, we expect both total revenue and core network services revenue growth, excluding United Kingdom government revenue, to be stronger in 2016 compared to 2015, on a constant currency basis,” said Sunit Patel, Level 3’s executive vice president and chief financial officer.

In December, Patel said ongoing demand for cloud services and customers’ desire for higher bandwidth services will fuel growth of Level 3’s business services unit, particularly in North America.

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