Windstream 1Q Net Income Falls 13 Percent to $52M

Windstream Corp. of Little Rock on Thursday reported first-quarter net income of $52 million, down 13 percent from the 60 million it reported during the same quarter last year.

The wireline and broadband telecommunications company, which held its annual meeting in Little Rock on Wednesday, said quarterly earnings per share fell to 9 cents from 10 cents last year. The company said its latest quarterly earnings per share figure includes about 1 cent in one-time expenses. Without those expenses, earnings per share would have 10 cents.

Analysts expected earnings per share of 11 cents.

Total revenue in the quarter was $1.50 billion, down more than 2 percent from $1.54 billion in the same quarter last year.

Still, the company cited positive trends in its expanding broadband and business services offerings, which has become its focus.

"Our vision at Windstream is to be the premier enterprise communications and service provider while maintaining our stable consumer business, which will result in substantial cash flows and long-term support of our current dividend," Jeff Gardner, president and CEO, said in a news release.

"We are successfully repositioning the company. Over the long term, we believe our strategy and investments will allow us to grow and increase shareholder value," he said.

Windstream said business service revenue reached $914 million, up 2 percent year-over-year. Consumer broadband service revenue rose 5 percent to $117 million. And total business and consumer broadband revenue now represent 71 percent of total company revenue.

Among business service revenue, Windstream's data and integrated services sales hit $400 million, up 8 percent from the same time last year primarily on growth in integrated voice and data services, data center and managed services.

Carrier service revenues reached $167 million, up 3 percent year-over-year, largely on fiber-to-the-tower installations, the report said.

"The business channel now represents 63 percent of revenue and will be an essential driver of our growth in the future," Gardner said. "As a result, we began increasing our business sales force at the end of the quarter and plan to open four new data centers this year to capitalize on further revenue growth opportunities in areas where we are experiencing strong demand."