Windstream’s revenue down in Q3; D & E purchase OK’ed
Windstream Corp. reported revenues of $734 million in its third quarter, an 8 percent year-over-year decrease. Net income was $80 million, a 24 percent decrease from a year ago.
Windstream added approximately 26,000 high-speed Internet customers during the third quarter, bringing its total broadband customer base to about 1.05 million, an increase of 9 percent year-over-year. Overall broadband penetration is now 36 percent of total access lines, and residential broadband penetration is approximately 53 percent of primary residential lines.
Windstream added more than 11,000 digital TV customers in the quarter, bringing its total customer base to about 323,000, or 18 percent penetration of primary residential lines.
Total access lines declined by approximately 27,000. Total lines at the end of the quarter were 2.93 million, a decline of approximately 5.2 percent year-over-year.
“Our marketing efforts and promotions resonated very well in the quarter, resulting in solid broadband customer growth and our lowest line loss since we formed the company in 2006,” said Jeff Gardner, Windstream’s president and CEO. “We remain focused on improving the trends in our business and continue to demonstrate that we can sustain our cash flows.”
Meanwhile, Windstream's acquisition of D&E Communications Inc., a phone and Internet company, has the approval of Pennsylvania state utility regulators. Windstream said it expects to close the deal this week.
The Pennsylvania Public Utility Commission voted 4-0 on Friday to approve the move. In a statement, the agency said the transaction is expected to be seamless to customers while promising better service and stable prices.
Little Rock, Ark.-based Windstream agreed in May to buy D&E for $159 million in stock and cash in a deal that nearly doubles the size of its business in Pennsylvania.
Ephrata, Pa.-based D&E has about 165,000 access lines and 44,000 high-speed Internet customers throughout eastern Pennsylvania.
Windstream provides digital phone, high-speed Internet and high-definition digital TV service and has about 3 million access lines in 16 states.
– The Associated Press contributed to this report