Level 3 core network services revenue rises 2.4 percent to $1.4 billion

Level 3 Communications' (NYSE: LVLT) Core Network Services was once again the shining star in its portfolio in the second quarter, rising 2.4 percent to $1.4 billion.

The service provider said that it saw growth across all three of its regions--North America, EMEA and Latin America.

Leading CNS revenues by region was North America with $970 million in revenues, while EMEA and Latin America had $220 and $189 million in revenue, respectively.

"Level 3 saw good growth in enterprise Core Network Services revenue this quarter across all three of our regions, and it continues to be the key driver for our business," said Jeff Storey, president and CEO, in the earnings release. "Demand remains healthy, and we had solid growth in Core Network Services sales this quarter."

However, as seen in previous quarters wholesale revenues declined again by $19 million. Sunit Patel, CFO for Level 3 said they "expect further declines for the remainder of the year" in wholesale services.

The service provider's total revenue was $1.57 billion, up from $1.58 billion in Q1 2013.

During the quarter, the competitive provider also reduced its net loss to $24 million, compared to $62 million in Q2 2012. The net loss, which included cash and non-cash severance charges attributable to executive management changes incurred in the second quarter 2013, was 11 cents per share.

Patel said that they "expect sequential CNS revenue growth in 2013 to be generally stronger compared to 2012."

Shares of Level 3 were trading at $22.37, up 51 cents, or 2.33 percent, in late Wednesday morning trading on the New York Stock Exchange.

 For more:
- see the earnings release

Special Report: Wireline telecom earnings in the second quarter of 2013

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