Landline losses hurt bottom line at CenturyLink: Net income falls 9

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Posted: Thursday, November 7, 2013 12:00 am

CenturyLink said Wednesday that third-quarter adjusted net income fell 9 percent to $375million, in part because of landline customer losses. It also saw growth in business customer demand for data services and growth in subscribers to high-speed Internet and Prism TV services.

The Monroe, La., telecommunications provider posted a net loss of $1.045 billion, or $1.76 per share, compared with net income of $270 million, or 43 cents per share, after it wrote down the value of its data hosting business by $1.1 billion.

“We had some very large customers, that were pure (co-location) customers, that took their business to their internal data centers,” Chief Executive Officer Glen Post told analysts. CenturyLink said it expects sequential growth in the data hosting business in the next quarter as more firms outsource IT services.

Revenue fell to $4.52 billion from $4.57 billion last year.

CenturyLink employs more than 1,000 people in Nebraska, with about 830 in Omaha.

The firm added 33,000 broadband customers, for a total of 5.9 million, and added nearly 17,000 Prism TV customers, for a total of 149,000. CenturyLink launched Prism in Omaha and other markets but did not say how many new customers it added in each.

CenturyLink also launched a 1-gigabit Internet service pilot project in west Omaha and to select business customers in Omaha. Post said 40,000 homes in Omaha now have access to the service, and the number should reach 50,000 in the fourth quarter. He did not say how many customers have subscribed but said the firm will expand its 1-gig pilot project to Las Vegas.

“We are very encouraged by these early results in Omaha,” he said.

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