Level 3 continued to ride the wave of enterprise growth as its enterprise Core Network Services (CNS) segment rose 11 percent to $984 million.
Inside the enterprise CNS segment, Level 3 reported sequential and year-over-year gains in all four of its CNS segments, including colocation and data center services, transport and fiber, IP and data services and voice services.
The service provider saw its largest revenue gains in its IP and data services and voice services segments, which rose 12.6 percent and 2.2 percent to $588 million and $237 million, respectively. Meanwhile, transport and fiber and colocation and data center services were up 0.7 percent and 5.8 percent to $508 million and $146 million.
However, Level 3's wholesale voice services revenues declined nearly 22 percent to $146 million from $186 million.
On a regional basis, North America was again the clear revenue leader, rising 8 percent year-over-year to $1.1 billion. Interestingly, Latin America saw the largest amount of growth with revenues up 10 percent to $199 million, while EMEA rose 2 percent to $229 million.
Enterprise services were a key contributor to Level 3's broader CNS segment, where total revenue was $1.5 billion, up from $1.4 billion in the same period a year ago, when wholesale is added into the mix.
During the quarter, the company made its boldest growth move by announcing that it would acquire tw telecom for about $5.7 billion in cash and stock, a deal that immediately enhances its growing enterprise services business. Last week, the service provider also announced the members of its new management team, which will include a collection of executives from both Level 3 and tw telecom following the close of the deal.
Total company second-quarter 2014 revenue was $1.63 billion, compared to $1.56 billion in the second quarter of 2013. Excluding $4 million of tw telecom transaction-related fees, the company's adjusted EBITDA was $463 million.
Looking toward the rest of the year, Level 3 said the company is maintaining its financial outlook.
"On a standalone basis, and excluding the effects from the tw telecom acquisition, we are reiterating our outlook for the full year 2014," said Sunit Patel, CFO of Level 3, in the earnings release.
Shares of Level 3 were listed at $44.50, down 41 cents or .91 percent, in Tuesday morning trading on the New York Stock Exchange.
- see the earnings release
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