Windstream Finds Some Q3 Growth

November 5th, 2015 by · 3 Comments

With the sale of its data center business set to shake things up in coming quarters, Windstream turned in a third quarter earnings report that surpassed analyst projections.  Revenue grew sequentially to $1.50B, higher than the $1.47B projected, while the net loss per share was just 0.08.

The revenue boost came in part from higher enterprise revenues, which rose strongly to $501M during the quarter, and higher carrier service revenues, which surged to $169M.  Meanwhile, CLEC and ILEC small business revenues held steady, a positive shift from prior quarters despite the ongoing customer attrition there.  Incremental contributions from CAF-2  were also a big piece of the puzzle.  Adjusted OIBDAR, which doesn't include the rent paid to CS&L for the network assets it spun off, checked in at $550M.

Windstream says it expects to use the proceeds from the sale of its data center business to help reduce debt by $300M.  The other $275M will go toward the company's Project Excel broadband upgrade, now expected to  be done by the end of 2016.  They also still expect to sell the 20% stake they retained in CS&L 'at the right time' -- it is currently valued at $595M.

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Categories: CLEC · Financials · ILECs, PTTs

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3 Comments So Far


  • Anonymous says:

    Their earnings release is hysterical!!! It’s like alphabet soup. They’ve got so many lettered footnotes describing so many pro forma measures that I can’t imagine anyone truly understanding what’s going on inside those financial statements. I got dizzy trying to figure it all out.

    Their decision to create that silly REIT is pure financial alchemy.

  • Anonymous says:

    how much was the CAF-2 and how much was spent on the network?

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