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Windstream Corp. posted a decline in first-quarter profit and revenues as both service revenue and product sales fell.
The Arkansas-based company, which acquired Paetec Holding Corp. in December 2011, reported a net income of $52 million, or 9 cents a share, compared with $60 million, or 10 cents a share, a year ago. Operating income dipped from $246 million to $236 million.
Windstream logged revenues of $1.5 billion in the first quarter, down from $1.54 billion a year ago. The company’s service revenues were $1.45 billion, compared with $1.49 billion a year ago. Product sales totaled $45 million for the quarter, down from $52 million.
Excluding non-operational charges, earnings per share would have been 10 cents, the company said.
Windstream’s first-quarter results fell below analysts’ expectations of 11 cents a share in earnings and revenues of $1.53 billion.
Windstream’s consumer service revenues fell 2 percent and wholesale revenues fell 17 percent during the first quarter. The company’s total business and consumer broadband revenues rose 2 percent to $914 million and now represent 71 percent of Windstream’s overall revenues.
“Our vision at Windstream is to be the premier enterprise communications and service provider while maintaining our stable consumer business, which will result in substantial cash flows and long-term support of our current dividend,” said Jeffery Gardner, president and CEO, in a statement. “We are successfully repositioning the company. Over the long term, we believe our strategy and investments will allow us to grow and increase shareholder value.”
Shares of Windstream stock (NasdaqGS: WIN) were trading at $8.13 cents a share Thursday afternoon, down 4.6 percent from Wednesday’s close of $8.52.
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