CenturyLink reported a net loss of nearly USD 6.2 billion for the first quarter, after impairment charges of USD 6.5 billion to write down asset values following a drop in its share price. The US operator also announced a strategic review of its consumer business, to look at alternatives to owning the activities.
Despite the bottom-line hit, CenturyLink maintained its full-year outlook for adjusted EBITDA and free cash flow at respectively USD 9.0-9.2 billion and USD 3.1-3.4 billion excluding integration and other one-time costs. In the first quarter, adjusted EBITDA on this basis rose 3.7 percent to USD 2.262 billion, while free cash flow fell to USD 315 million from USD 941 million. The integration and transformation costs totaled USD 34 million.
Revenues were still down 5.0 percent to USD 5.65 billion, with declines across all parts of the business. Capital expenditure meanwhile increased to USD 931 million from USD 805 million a year ago.
CenturyLink said it was "comfortable" holding on to its consumer business for the long term, as a source of cash flow that's performing well where it's investing. However, the strategic review will "help us better understand whether there are opportunities to better maximize the value of this asset", the company said. The business counted 4.8 million broadband subscribers at the end of March, down from just under 5 million a year earlier.
