Windstream (Nasdaq: WIN) reported that a rise in both business and consumer revenues were major factors in helping to increase revenues sequentially by $6 million to $1.51 billion and offset legacy wholesale and consumer declines.
The telco's business service revenues rose 2 percent year-over-year to $913 million. Business customers that generate $750 or more in revenue a month grew 6 percent year-over-year, while average service revenue per business customer per month rose 7 percent over Q2 2012.
Driven by growth in integrated voice and data services, data center, and managed services, total data and integrated services revenues were $405 million, up 8 percent from Q2 2012. To capitalize on new data center growth, the service provider opened three new data centers in Chicago, Nashville and Raleigh-Durham, N.C.
Carrier service revenues rose 1 percent year-over-year to $166 million, but wholesale revenues declined 13 percent to $151 million.
Windstream said the wholesale revenue decline was due to "lower intrastate access rates as part of intercarrier compensation reform implemented in July 2012 and lower switched access revenues from declining consumer voice lines."
Consumer revenue rose 6 percent year-over-year to $120 million as a result of an uptick in broadband features and faster speeds. Total average revenue per customer increased 7 percent year-over-year. Overall consumer service revenues were $327 million, down 3 percent from the same period a year ago.
The service provider updated its financial forecast with the expectation that revenue will decline 1 to 3 percent compared to 2012. It said the reduced forecast is "due to a modestly softer business sales environment and continuing pressure in the carrier transport business."
Shares of Windstream were listed at $8.23, down 37 cents, or 4.3 percent, in Thursday morning trading on the Nasdaq stock exchange.
- see the earnings release
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