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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