Windstream (Nasdaq: WIN) today reported that its first-quarter 2012 total revenues and sales were $1.55 billion, down 0.5 percent year-over-year, due to a decline in both consumer and wholesale service revenues.
The Little Rock, Ark.-based ILEC's net income, meanwhile, increased to $64.6 million, or 11 cents per share, from $29.4 million, or 6 cents per share, in the first quarter of 2011. Wall Street analysts forecast earnings of 14 cents per share on revenue of $1.56 billion.
Here's a breakdown of the service provider's key metrics:
- Business Services: Windstream's dream to become a major business player continued to come true in Q1 as the segment's revenues were $897 million, up 3.2 percent from Q1 2011.
- Consumer Services: In the consumer segment, broadband continues to be a major driver for Windstream, rising 5.9 percent year-over-year, to $113 million. The service provider said that business and consumer broadband revenues represented approximately 68 percent of Windstream's total revenues and sales in the quarter. However, overall consumer service revenues declined 2.6 percent year-over-year, to $338 million, due to expected declines in traditional voice access lines. During the quarter, access lines declined sequentially to 3.15 million from 3.18 million in Q4 2011.
- Wholesale Services: Wholesale revenues declined 6.3 percent from the same period a year ago, to $225 million, a factor it attributes to a number of products in PAETEC's portfolio that it said were no longer "viable." Overall wholesale revenues and sales were $1.55 billion in the first quarter, down 0.5 percent from Q1 2011.
Despite losses in the wholesale segment and consumer, Windstream President and CEO Jeff Gardner maintained an upbeat outlook for the service provider.
"The business channel has gained significant traction with the acquisition of PAETEC, and our combined team is having tremendous success driving new sales opportunities," he said in the earnings release. "Our consumer business also had a very solid quarter driven by growth in broadband service revenues and continued success with our bundling strategy."
Windstream's shares were trading at 10.06, down $1.20, or 10.66 percent, in late morning trading on the Nasdaq.
For more:
- see the earnings release
Special Report: Wireline in the first quarter of 2012
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