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Windstream net income, revenues decline in Q2

Rochester Business Journal
August 7, 2014

Windstream Holdings Inc. on Thursday reported a 65 percent drop in net income in the second quarter.

The Arkansas-based company, the parent of Windstream Corp., which employs 685 people Monroe County with a total of 860 in New York, posted net income of $14 million, or 2 cents a share, down from $39.7 million, or 6 cents a share a year ago.

The company logged total sales and revenues of $1.47 billion, down 2 percent from $1.5 billion.

"Overall results were solid and largely in-line with our expectations,” said Jeffrey Gardner, president and CEO, in a statement. “Progress made during the first half of 2014 has positioned us well to reach our goals for the year. In addition, our plans to spin off certain assets will allow Windstream to accelerate network investments, provide enhanced services to customers and maximize shareholder value.”

For the first six months the company had an adjusted free cash flow of $440 million.
 
Enterprise and small-business service revenues grew slightly to $749 million. The company’s data and integrated services were $418 million—a 3 percent increase—from a year earlier. The data center and managed services portion of business soared to $31 million—a 20 percent increase.
 
"We are successfully executing on our key priorities this year to accelerate growth opportunities and strengthen our position as a leading provider of enterprise communications services,” Gardner said. “We have expanded our business marketing programs to strengthen sales and are seeing continued solid sales momentum and positive trends supporting our efforts to move up-market.”

Windstream announced late last month it plans to spin off some telecommunications network assets into an independent, publicly traded real estate investment trust. The spinoff will lower debt by roughly $3.2 billion, company officials said. The deal is expected to close in the first quarter 2015.

Windstream affirmed its financial guidance for 2014. It continues to expect revenues to range from a 2.5 percent decline to a 1 percent increase.

Shares of Windstream stock (Nasdaq: WIN) were trading midday at $11.28, down some 2 percent.

(c) 2014 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.



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