Windstream business services results up 1 percent, revenues decline to $1.5B

Windstream (Nasdaq: WIN) reported that its ongoing focus to become the fourth largest enterprise provider is bearing fruit as its business service revenues rose 1 percent year-over-year to $916 million.

Within the business segment, data and integrated services, including IP-based voice and data, dedicated Internet access (DIA) and data center services, were $407 million, up 5 percent year-over-year.

It also saw gains in how much its business customers are spending on services. Enterprise customers that generate $750 or more in revenue per month grew 6 percent from the same period a year ago. 

One of the highlights of growth during the quarter came in its data center segment. Windstream lit up a new data center in Nashville, bringing its total to 27 nationwide.

Driven by new fiber to the tower (FTTT) builds, carrier service revenues rose 4 percent to $169 million. As of the end of the quarter, the telco said it completed 4,200 towers with 600 in progress.

The telco saw similar gains in the consumer broadband segment where revenues rose 4 percent to $119 million due to new sales of broadband features and faster speeds.

However, it did see declines in both total consumer and wholesale revenues.

Total consumer service revenues were $324 million, down 3 percent from Q3 2012. Likewise, wholesale revenues were $148 million, down 19 percent year-over-year due to lower intrastate access rates as part of intercarrier compensation reform implemented in July 2012 and fewer minutes of use.

Windstream said that "Growth in the business channel combined with steady consumer results helped to offset greater wholesale declines due to a second step-down in intercarrier compensation rates during the third quarter."

Overall Q3 2012 revenue was $1.5 billion, down 3 percent year-over-year and $2 million sequentially.

Shares of Windstream were listed at $8.37, down 28 cents, or 3.29 percent, in morning trading on the Nasdaq stock exchange.

For more:
- see the earnings release

Earnings summary: Wireline telecom earnings in the third quarter of 2013

Related articles:
Windstream lights up data center in Nashville, brings total to 27 nationwide
Windstream establishes 9 Ethernet interconnection locations for wholesale customers
Windstream's Gardner: Broadband is our second fastest growing revenue stream
Windstream enhances public sector play with $12M U.S. Veterans Affairs contract
Windstream's Gardner: We're focused on integrating Paetec


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