Glen F. Post, III, the President and CEO of Centurylink Inc (NYSE:CTL), reported that they are confident that their continued investment in top high-bandwidth broadband network infrastructure puts company in a strong position for long-term growth.
Centurylink reported that high-bandwidth data services in respect of enterprise demand continue to be strong. Consumer broadband units came lower than anticipated, however, the company is encouraged to attract new higher-value customers based on its improved offerings. They boosted their capital investment in broadband infrastructure and high-bandwidth services during the second quarter, which they consider better positions the company to enhance revenues in Q2 2017 and beyond. They expect second half and FY2017 capital expenditures of around $1 billion and $2.6 billion, respectively.
Centurylink reported operating revenues of around $4.1 billion in the second quarter. It posted operating income of $367 million, which reflects one-time charges of around $150 million linked to the sale of the colocation business and data centers on May 1, 2017.
The company recorded adjusted EBITDA of $1.44 billion in the second quarter, discounting special items. Net income in the second quarter came at $17 million while diluted EPS was $0.03, which showcases a negative net income effect of around $115 million of one-time charges linked to the Colocation Sale
Centurylink management reported that they achieved their anticipated adjusted EBITDA for the second quarter as the employees did a remarkable job managing expenses, while core revenues came below expectations mainly due to the drop in legacy revenues and the drop in broadband units being better than expected.
They continue to record good progress in getting the required approvals for the awaited Level 3 acquisition, having obtained approval in 23 of 25 required territories and states. Integration planning is advancing well and they continue to expect closing the acquisition by the close of September 2017. They remain thrilled about the value they consider this deal will create for their customers, employees and shareholders.