Windstream Holdings Inc. of Little Rock on Thursday reported a $68 million second-quarter loss and said it would end its quarterly dividend to shareholders as part of a new capital allocation strategy.
The telecommunications and networking company reported quarterly revenue of $1.49 billion, up 10 percent from the same quarter last year. Operating income was $107 million, down 31 percent from $155 million in the same period a year ago.
Its $68 million net loss, or a loss of 37 cents per share, compared with net income of $1.5 million, or 1 cent per share, a year ago.
“Windstream delivered solid second quarter results, highlighted by sequential growth in Adjusted OIBDAR,” CEO Tony Thomas said in a news release. “Our unique network assets and cloud-based applications have us well positioned to grow market share. Additionally, we continue to improve our cost structure and have significant opportunities to further drive down costs through reductions in network interconnection costs, upcoming synergies from the EarthLink and Broadview transactions and initiatives to advance our organizational effectiveness.”
Windstream completed its purchase of EarthLink Holdings Corp. of Atlanta in February. The company has said the $1.1 billion all-stock deal will expand Windstream’s national fiber footprint and lead to enhanced products and services.
Windstream closed on its $225 million purchase of Broadview Broadview Networks Holdings Inc. of Rye Brook, New York, last month. The private, cloud-based unified communications services provider to small and medium-sized businesses offers a suite of services under the OfficeSuite UC brand.
End of the Dividend
click here to read more.