Windstream slips; subscriber losses take a toll in Q2

|About: Windstream Holdings, Inc. (WIN)|By:, SA News Editor

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