Windstream flips to 4Q profit of $140.5 million

by Talk Business & Politics staff ([email protected]) 129 views 

Windstream Holdings reported a healthy fourth quarter posting net income of $140.5 million, or 1.41 per share, versus a $77.5 million loss one year ago. Revenue for the Little Rock-based telecom communications company was slightly lower at $1.427 billion in the fourth quarter compared to $1.443 billion in the previous year’s reporting period.

For the full year, Windstream turned a $27.4 million profit, or 24 cents a share, compared to its full year loss of $39.5 million in 2014. Annual revenue fell to $5.765 billion in 2015 compared to $5.829 billion in 2014.

“Our year-end results reflect the strength and potential of our business and were in-line with our 2015 guidance. During the year, we made significant progress on our strategic objectives. We remain focused on stabilizing and improving Windstream’s financial performance and advancing our network capabilities – all of which position the company for long-term success and shareholder value creation,” said Tony Thomas, Windstream president and CEO.

Other financial highlights included:

  • Total service revenues were $1.36 billion in the fourth quarter, essentially flat from the same period a year ago, and $5.47 billion for the year, essentially flat year-over-year.
  • Consumer and small business ILEC service revenues were $397 million in the fourth quarter, a decrease of 2% from the same period a year ago, and $1.6 billion for the year, a decline of 1.5% year-over-year.
  • Carrier service revenues were $171 million in the fourth quarter, an increase of $2 million from the third quarter, and $688 million for the year, a decrease of 6% year-over-year.
  • Enterprise service revenues were $498 million in the fourth quarter, an increase of approximately $2 million from the third quarter, and $1.95 billion for the year, an increase of 4% year-over-year.
  • Small business CLEC service revenues were $132 million in the fourth quarter, a decrease of 14% from the same period a year ago, and $559 million for the year, a 15% decrease year-over-year.

“Looking ahead to 2016, we expect to continue building on the solid foundation established in 2015, and we are focused on pursuing multiple paths to create value for shareholders. We are executing a focused strategy to stabilize and grow operating cash flow. We also will continue to prudently manage our balance sheet and take a balanced approach to capital allocation that includes reducing debt, making capital investments that create incremental cash flows and returning capital to shareholders,” Thomas said.