Gains in broadband and business services drove up Windstream's (Nasdaq: WIN) Q3 revenues up to $966 million, a 32 percent increase from Q3 2009.
The ILEC reported $85 million in net income, a 7 percent increase over Q3 2009, while capital expenditures were $113 million, a 68 percent increase year-over-year.
Here are some of the key service performance metrics:
- Landline Loss: During the third quarter, Windstream lost about 30,700 traditional voice lines, resulting in a year-over-year decline of 3.7 percent. At the end of the quarter, Windstream had a total of 3.3 million access lines.
- Broadband Access: Broadband adoption continued to climb during the third quarter with 15,700 new subscribers, a slight increase over the 14,800 additions it had in Q2. Overall DSL penetration is now 42 percent of total voice lines and 60 percent of primary residential lines. Windstream plans to expand broadband penetration further with a mix of bundle service packages, MDU penetration and into harder to reach rural areas with the broadband stimulus grant it won earlier this year.
- Video Services: After only adding 8,000 new subscribers in Q2, video subscribership was up in Q3 as the ILEC signed up 13,000 new satellite TV customers in the quarter, bringing its total customer base to approximately 433,000.
- Business Services: Buoyed by its purchase of NuVox Communications and an overall increasing focus on the business sector, Windstream's advanced data and integrated solutions revenue increased one percent year-over-year.
Looking ahead at Q4, Windstream expects to generate $814 million to $859 million in expected free cash flow in 2010, resulting in a dividend payout ratio between 54 percent and 57 percent.
In separate news, Windstream is also on the acquisition prowl once again. This time the service provider is going to acquire data center and managed hosting provider Hosted Solutions from ABRY Partners for $310 million in cash.
- see the release
Sizing up the wireline industry in the third quarter 2010
Windstream Q2: Profit down, but revenue up 22 percent
Windstream axes 220 jobs as it completes Iowa Telecom integration
Jeff Gardner, CEO and President of Windstream on industry consolidation, the future of broadband and business service growth
Windstream wraps up acquisition of Iowa Telecom