Windstream (Nasdaq: WIN) slightly missed its net income targets in the third quarter, while capex spending on M&A and integration rose. For the quarter, the ILEC's net income declined to $72 million, or 14 cents per share, from $85.2 million, or 18 cents per share, in Q3 2010.
Click here for a detailed look at Windstream's Q3 results.
The service provider's Q3 2011 expenditures were $178 million, a 57 percent year-over-year increase.
Despite the net income setback, Windstream saw a strong uptick in broadband and business revenues. Broadband revenues rose 7 percent to $118 million, while business revenues rose 2 percent year-over-year to $498 million.
Here's a breakout of the company's key metrics:
- Access Lines: As expected, Windstream lost 37,000 access lines during the third quarter, or 3.9 percent year-over-year. At the end of the quarter, Windstream had 3.22 million total access lines.
- Broadband Services: In the third quarter, the service provider added about 9,300 new broadband customers, bringing its total customer base to approximately 1.35 million customers--a more than 4 percent year-over-year increase. Consumer broadband penetration is now approximately 65 percent of primary residential lines.
- Video Services: At the end of Q3, Windstream had about 449,000 video customers, up 4 percent from Q3 2010.
- Business/Wholesale Services: Business service revenues increased 1 percent year-over-year. Meanwhile, the sale of special access wholesale circuits increased 9 percent year-over-year, a factor Windstream attributes to increased demand for wireless backhaul solutions.
Looking forward, Jeff Gardner, president and CEO, said that the service provider will continue to realign its business "to achieve revenue and cash flow growth" and that "Given our shifting revenue mix, success-based capital investments and expected deal synergies, we are on the verge of showing growth in both of these areas."
- see the earnings release
- Reuters has this article
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