Windstream (Nasdaq: WIN) reported that first-quarter business and consumer broadband revenue grew 5 and 2 percent year-over-year, but those results weren't enough to prevent overall revenues from declining 2 percent to $1.5 billion due to legacy revenue losses.
Consumer and business broadband now collectively represent 71 percent of the telco's overall total revenue, surpassing consumer voice and wholesale revenues, which now make up only 14 and 10 percent of its total revenue.
"Our vision at Windstream is to be the premier enterprise communications and service provider while maintaining our stable consumer business, which will result in substantial cash flows and long-term support of our current dividend," said Jeff Gardner, president and CEO, in the earnings release. "We are successfully repositioning the company.
Here's a breakdown of the telco's key metrics:
Consumer Services: Driven by increased sales of broadband features and faster speeds broadband service revenues were $117 million, up 5 percent year-over-year. However, overall consumer service revenues were $328 million, down 2 percent from Q1 2012. Broadband ARPU rose 5 percent by offering higher speeds and new voice, video and data bundles.
Business Services: Business services revenues rose 2 percent year-over-year to $914 million. Total enterprise customers, who generate $750 or more in revenue per month, grew 7 percent year-over-year. The telco said that average service revenue per business customer per month increased 6 percent from the same period a year ago to $395.
Wholesale Services: Wholesale revenues in Q1 2013 declined 17 percent to $152 million due to lower switched access revenues from declining consumer voice lines and lower intrastate access rates as part of intercarrier compensation reform implemented in July 2012. Meanwhile, carrier services revenues, particularly the sale of wireless backhaul, rose 3 percent year-over-year to $167 million.
Shares of Windstream were trading at $8.08, down 0.44, or 5.16 percent on the Nasdaq stock exchange Thursday morning.
- see the earnings release
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