Windstream Holdings Reports $41M in 3Q Net Income

by Sarah Campbell-Miller  on Thursday, Nov. 8, 2018 9:59 am   2 min read

For the first time since the second quarter of 2016, Windstream Holdings Inc. of Little Rock has swung from a loss to a profit.

The publicly traded telecommunications firm (Nasdaq: WIN) reported Thursday net income of $41 million for the third quarter, compared to a $102 million loss for the same period last year.

That's net income of 97 cents per share, compared to a loss of $2.76 in the third quarter of 2017.

But reported total revenue and sales were $1.42 billion, and total service revenue was $1.4 billion; both were down 5 percent from the same quarter last year.

Operating income was $76 million compared to $41 million in the same period a year ago.

The company touted continued growth in consumer broadband customers and enterprise strategic sales.

"Windstream added 8,400 broadband customers in the third quarter, our strongest residential subscriber growth in years," President and CEO Tony Thomas said in a news release. "This growth is clear evidence that customers are responding as we deploy faster broadband speeds across our very rural footprint, and we will continue to build on that success. We expect to double the availability of 100 Mbps internet service to 30 percent of the households in our markets by the end of March 2019.

"Our Enterprise segment saw continued acceleration of SD-WAN and strategic sales, which represented 54 percent of total enterprise sales during the quarter," he continued. "Our intense focus on higher-margin strategic sales enhances both our competitiveness and contribution margins. At the end of the quarter, annualized strategic product revenue was $165 million, representing a 71 percent year-over-year growth rate.

"These results, combined with ongoing reductions in network interconnection expenses and optimization of other costs, helped deliver year-over-year growth in Adjusted OIBDAR for the third consecutive quarter, as well as improved free cash flow trends," Thomas said. "Windstream is on a clear path going forward to improve revenue trends, drive adjusted OIBDAR growth and create value for all our stakeholders."

The company reported the following for its segments:

  • ILEC consumers and small business service — $459 million in revenue for the third quarter, down 4 percent from the same quarter last year. Income was $266 million, down slightly from $270 million.
  • Enterprise service — $717 million in revenue, down 5 percent. Income was $161 million, up from $147 million.
  • Wholesale service — $181 million in revenue, down 5 percent. Income was $127 million compared to $133 million for the same period last year.
  • CLEC consumer service — $44 million, down 16 percent. Income was unchanged at $25 million.

 

 

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