Windstream Profits Fall On Restructuring Charges

by Roby Brock ([email protected]) 46 views 

Rising business service revenue and increases in consumer broadband products drove Windstream Corp. third quarter revenues to higher ground.

The Little Rock-based communications company posted sales and revenue of $1.552 billion for the quarter compared to $1.023 billion one year ago.

Profits were lower in part due to $12 million in restructuring charges as Windstream alters its workforce to accommodate its changing business model from a rural telecom to a broadband and infrastructure company in the modern world of telecommunications.

Net income fell from $78.1 million one year ago to $53.7 million in the current quarter.

“Our business continues to perform well, and I am confident in our ability to deliver strong free cash flow long-term to support our dividend,” said Jeff Gardner, president and CEO of Windstream. “The dividend is a key component of our investment thesis, and we believe it is the best way to provide returns to our shareholders.”

Windstream shares closed trading on Wednesday at $9.42. The company’s stock has traded between $9.00 and $12.55 per share during the past year.