Windstream reports third-quarter results
Completed acquisition of Broadview Networks
Launched proprietary SD-WAN Concierge and OfficeSuite® products across footprint
Expanded enterprise contribution margins
Improved broadband subscriber trends sequentially
Grew ILEC Consumer ARPU for 11th consecutive quarter
Release date: Nov. 9, 2017
LITTLE ROCK, Ark. - Windstream Holdings, Inc. (NASDAQ: WIN), a leading provider of advanced network communications and technology solutions, today reported third-quarter results.
“Our overall strategy continues to deliver solid results,” said Tony Thomas, president and chief executive officer of Windstream. “We continue to see growing demand for our SD-WAN service, which represented 19 percent of total enterprise sales in the quarter. Strategic enterprise sales, which include SD-WAN, Unified Communications as a Service and on-net sales, accounted for 36 percent of total enterprise sales in the quarter. We also continue to deliver faster broadband speeds to more consumers and small businesses, which led to improved broadband subscriber trends sequentially.”
During the quarter, Windstream completed its acquisition of Broadview Networks Holdings, Inc. The company now offers Broadview’s innovative and award-winning unified communications solution, OfficeSuite, along with Windstream’s proprietary SD-WAN Concierge service across its entire footprint.
Windstream also announced it is adopting a new business unit structure and combining its operations into two distinct units: Cloud & Connectivity and Consumer & SMB. The company is consolidating the Enterprise, CLEC C/SMB and Wholesale segments into the Cloud & Connectivity business unit.
“This change will enable us to accelerate our path to revenue growth, improve the customer experience and simplify our company,” Thomas said. “These changes are based on the basic tenet that organizational structure should be nimble and follow the vision and strategy. The anchor of our vision is based on the customer experience - that is not changing.
“The Cloud & Connectivity business unit will enable us to leverage disruptive technologies in our product solutions, such as SD-WAN and OfficeSuite, as well as broader SDN-based products, to differentiate ourselves in the marketplace. Having three different organizations doing that was no longer optimal. These solutions combined with a best-in-class customer experience will accelerate our transformation from a telecom reseller to a cloud application and connectivity provider.
“Additionally, as a result of our significant network investment over the past three years, we are transforming our ILEC Consumer & SMB business unit from a phone and internet provider to a premium broadband and entertainment provider,” Thomas continued. “Our suite of premium internet and business solutions, which we are rebranding under the name Kinetic by Windstream, now are available to more than 50 percent of the households and small businesses across our 18-state local footprint.”
The Cloud & Connectivity business unit will be led by Layne Levine. The Consumer & SMB business unit will be led by Jeff Small.
Results under GAAP
Total revenues and sales were $1.50 billion and total service revenues were $1.47 billion in the third quarter, an increase of 11 percent and 12 percent respectively year-over-year. Operating income was $43 million compared to $129 million in the same period a year ago. The company reported a net loss of $102 million, or a loss of 55 cents per share, compared to a net loss of $66 million, or a loss of 72 cents per share, a year ago.
The following information was filed by Windstream Holdings, Inc. (WIN) on Thursday, November 9, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.