Windstream posts USD 1.8 bln loss in Q4 after writing off ILEC business

Thursday 22 February 2018 | 18:00 CET | News

US operator Windstream reported a net loss of USD 1.84 billion for the fourth quarter after it wrote down the value of its ILEC consumer, small business and wholesale operations by USD 1.8 billion. That compares to a loss of USD 87 million in the year-earlier period. The company's revenues for the period were up slightly to USD 1.5 billion from USD 1.3 billion, thanks to the acquisitions of EarthLink and Broadview and new services in the enterprise market.

On a pro forma basis, service revenues were down 3 percent year-on-year to USD 1.48 billion, and adjusted OIBDAR dropped 1 percent to USD 521 million. 

The ILEC Consumer and Small Business service revenues fell 4 percent to USD 476 million and contributed gross profit of USD 282 million. Enterprise service revenues were little changed at USD 760 million, and the business added USD 164 million in profit. 

Windstream reduced capex to USD 839 million for all of 2017 from USD 900 million in 2016. The company generated USD 143 million in adjusted free cash flow for 2017. The group said it had refinanced nearly USD 2 billion in debt in the past year so it has no significant maturities before 2020. 

The company said it expects service revenue trends to slightly improve in 2018, while adjusted OIBDAR will be stable to slightly lower, in the range of USD 1.95-2.01 billion. Adjusted capital expenditures are expected to fall to USD 750-800 million, and adjusted free cash flow is estimated at USD 165 million, after cash interest on long-term debt of around USD 385 million.

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