Windstream Corp. reported revenues of $800 million in the second quarter of 2008, marking a 3 percent decrease compared with the year-ago quarter.
The operator – which provides digital phone, high-speed Internet, and high-definition (HD) video and entertainment services to residential and business customers in 16 states – reported a net income of $102 million, a 12 percent decrease year-over-year.
“Windstream continues to produce strong cash flow that, combined with our share repurchases and capital reductions, should significantly improve our dividend payout ratio compared to last year,” said Jeff Gardner, president and CEO of Windstream. “I am pleased that we have returned approximately $425 million to shareholders during the first half of this year through dividends and share repurchases. This is a testament to the tremendous performance of the entire Windstream team to deliver consistent industry-leading results.”
Windstream added approximately 23,000 new high-speed Internet customers in the second quarter, bringing its total customer base to more than 934,000 – an increase of nearly 20 percent year-over-year.
Windstream added nearly 21,000 digital TV customers in the quarter, bringing its total customer base to approximately 231,000. Total access lines declined by 37,000; total lines at the end of the quarter were 3.12 million, a decline of 5 percent year-over-year.
“This is quite an accomplishment given the gradually increasing cable TV competition for local phone service and the migration of our business customers to higher-capacity circuits,” Gardner said. “These results are a tribute to our team’s focus at the point-of-sale, as well as on customer retention.”
Windstream also announced that it has agreed to sell its wireless properties in North Carolina to AT&T, for $60 million in cash.
The transaction includes approximately 52,000 wireless customers, spectrum licenses and cell sites covering a four-county area of North Carolina with a population of approximately 450,000, and six retail locations. The transaction is expected to close before the end of the year, subject to customary closing conditions.
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