Windstream Reports $162M 2Q Loss

Windstream Reports $162M 2Q Loss
(Kerry Prichard)

For the second quarter of 2020, Windstream reported a loss of $162.4 million, or $3.80 per share, an improvement from a loss of $544.1 million, or $12.76 per share, in the same quarter of last year.

The company reported revenue of $1.19 billion, down from $1.29 billion.

"Windstream delivered solid second-quarter results bolstered by strong consumer broadband growth and increasing demand for enterprise strategic products and services. With our plan of reorganization confirmed by the court, we are poised to emerge later this summer from restructuring stronger than ever to expand broadband to rural America and help businesses succeed in the digital transformation," President and CEO Tony Thomas said in a news release.

The company announced preliminary second-quarter results last week.

Bankruptcy Status

When the company emerges from bankruptcy, its debt will be reduced by more than $4 billion, or about two-thirds. It will also have access to about $2 billion in new capital to expand its 1-gigabit-per-second internet service in rural America and "maintain its product and software leadership" in SD-WAN and UCaaS for enterprise customers.

On Thursday, Windstream said, "This deleveraging and new financing will allow Windstream to refocus its allocation of resources on growing the business and better positioning the company for the long term."

Segment Results

During the quarter, Kinetic service revenue was $516.1 million, down slightly from $516.7 million in the same period a year ago. Enterprise service revenue was $582.5 million, down from $681.7 million. Wholesale service revenue was $86.7 million, up from $88.1 million.

In addition, Windstream added more than 22,000 Kinetic broadband customers in the quarter, seeing its highest quarterly growth in more than a decade.

For the first six months of the year, more than 40,000 broadband customers were added, surpassing the company's projection of 40,000 for the year. It has updated its 2020 full-year guidance to 60,000.

Windstream also touted 24% growth in enterprise strategic revenues for the first six months of the year compared to the same period a year ago and that sales of strategic products and services now represent an annualized run-rate of approximately $334 million in revenue.

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