Uniti Group Inc. of Little Rock reported Monday a first-quarter net loss of $80.3 million, or 41 cents per share, compared to net income of $2.5 million, or 1 cent per share in the same quarter last year.
The publicly traded real estate investment trust (Nasdaq: UNIT), a spinoff of Windstream Holdings Inc. of Little Rock, reported first-quarter revenue of $266 million, up from $261 million.
“We are pleased that the U.S. Bankruptcy Court for the Southern District of New York approved our previously announced settlement agreement with Windstream. This agreement adds significant strategic value for Uniti as it further expands and enhances the value of our national network, strengthens Windstream’s competitive position, and provides Uniti a clear path forward,” President and CEO Kenny Gunderman said in a news release.
“We are also announcing today new terms for our previously announced sale of certain U.S. towers. Following the ‘go-shop’ period, Uniti will now sell 90% of its U.S. tower business to the same wireless infrastructure operator and investor, Melody Investment Advisors LP while retaining a 10% investment interest through an affiliate of Melody,” he continued.
Gunderman said the deal will realize "significant value" for the company while allowing it to own a meaningful interest in a scale wireless tower owner and operator. As part of the deal, the firms will collaborate on integrated solutions for wireless carriers requiring towers, fiber and small cells infrastructure.
“We continue to closely monitor the effects on our operations from COVID-19. Currently, we have not seen any meaningful impact on our business, and our fiber network continues to perform well," Gunderman said. "We are also addressing any concerns from our customers who may have been impacted by this pandemic and continue to ensure that our field crews perform their work safely and responsibly.”