Windstream Reports $94M 2Q Loss

by Sarah Campbell-Miller  on Thursday, Aug. 9, 2018 9:26 am   2 min read

Windstream Holdings Inc. of Little Rock on Thursday reported a second-quarter net loss of $94 million, or $2.30 cents per share, even bigger than the loss of $68 million ($1.83 per share) reported in the same quarter last year.

The publicly traded telecommunications company (Nasdaq: WIN) also reported that total revenue and sales were $1.44 billion, with a total service revenue of $1.42 billion in the first quarter.

Total revenue and sales were down 3 percent year-over-year, and total service revenue was also down 3 percent.

Operating income was $88 million compared to $103 million in the same period a year ago.

But Windstream touted that it saw net growth in broadband subscribers for the first time in three years.

"Our Consumer segment delivered a successful quarter, adding 2,300 broadband subscribers," President and CEO Tony Thomas said in a news release. "This continued an upward trend that we have experienced for the past several quarters and was driven by both strong sales and lower churn. It demonstrates that our network investments are paying off and enables us to say with confidence that we expect to grow our consumer broadband base in 2018.

"Our Enterprise segment continues to see improved results as our focus on SD-WAN, Unified Communications as a Service and on-net sales have driven improving revenue trends and margins. 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."

He also said, "Reflecting these strong segment results, Windstream delivered sequential and year-over-year growth in Adjusted OIBDAR that came on the back of both improved revenue trends and lower cash costs."

The company reported the following for its segments:

  • CLEC consumer service - $46 million in revenue for the second quarter, down 10 percent from the same quarter last year.
  • Wholesale service - $182 million in revenue, down 7 percent.
  • Consumer and small business ILEC service - $466 million in revenue, down 6 percent.
  • Enterprise service - $730 million in revenue, up 1 percent.

The company's guidance for 2018 remains unchanged. Windstream expects service revenue trends to be slightly improved versus 2017 trends, adjusted OIBDAR to be in the range of $1.95 billion to $2.01 billion and adjusted capital expenditures to be between $750 million and $800 million.

 

 

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