Windstream earnings rise 18%
by August 5, 2011 9:09 am 65 views
Editor’s note: Roby Brock, with our content partner Talk Business, wrote this report. He can be reached at [email protected]
Windstream Corp., the rural telecom that has been adding data and fiber companies to its portfolio, posted solid earnings and revenue growth in the second quarter on its five-year anniversary as a stand-alone company.
Windstream launched as a spin-off of traditional wireline service from then-Alltel Corp. in July 2007.
The Little Rock-based telco, which will move into the Fortune 500 with its latest acquisition, posted net income of $93.2 million, an 18% increase from one year ago. Quarterly revenues rose 12% to $1.03 billion.
"On the heels of our five-year anniversary as a public company, it is gratifying to report that we grew revenue and improved the company’s profitability year-over-year in the second quarter," said Jeff Gardner, president and CEO of Windstream. "Windstream is successfully executing our strategic initiatives and turning a pivotal corner toward organic growth. I am particularly proud that we have transformed this business while maintaining our dividend and delivering industry leading shareholder returns."
Windstream announced late last week that it entered into a definitive agreement to acquire PAETEC Holding Corp., a Fairport, New York-based telecom, in a transaction valued at approximately $2.3 billion.
The merger expands Windstream’s presence to 46 states and the District of Columbia and will add approximately 36,700 fiber route miles to its network across the country. Windstream will also offer expanded data center services across the United States and have improved capability to serve multi-location business customers, once the transaction is closes.
In the last year, Windstream has completed other acquisitions that have broadened the company’s fiber network capabilities and data center offerings.
Windstream shares (NYSE: WIN) opened Friday at $11.47 and moved slightly higher in early trading. During the past 52 weeks, the share price has ranged from a $14.40 high to a $10.97 low.