Windstream slips; subscriber losses take a toll in Q2

Windstream's (WIN -2.3%) total service revenue fell 2% Y/Y in Q2 to $1.42B. Enterprise/small business service revenue rose slightly to $749M, but consumer fell 2.8% to $317M and carrier fell 6% to $155M.

10.7K business customers were lost Q/Q, lowering the total to 368K (-8% Y/Y). Consumer voice lines fell by 32.9K to 1.67M (-6% Y/Y), consumer broadband subs by 16.6K to 1.15M (-3%), digital TV subs by 4.8K to 394.1K (-5%), and carrier special access circuits by 4.9K to 88.5K (-14%).

Adjusted free cash flow was $126M, better than net income of $14M. While revenue fell 2%, costs/expenses rose 2% to $1.3B.

Windstream is affirming full-year guidance for -2.5% to 1% revenue growth, $800M-$850M in capex, adjusted free cash flow of $775M-$885M, and a dividend payout ratio of 68%-78%.

Shares remain above where they traded before the telco's July 29 REIT announcement.

Q2 results, PR

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Comments (2)
  • FinancialDave
    , contributor
    Comments (2312) | Send Message
    At least they are holding their 25 cent dividend for now. We'll see what happens later.
    7 Aug 2014, 11:32 AM Reply Like
  • bdbilldev
    , contributor
    Comments (2) | Send Message
    Should I buy back big? WIN's treated me well, but I have no idea whether to buy back in.
    7 Aug 2014, 11:30 PM Reply Like
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