WindstreamWindstream reported net income of $91 million ($0.21 per share diluted) for 2Q09, down 11% from $102 million ($0.27 per share diluted) year-over-year. Total revenue of $714.5 million represents a 5.9% year-over-year (y/y) decrease from $753 million. Operating income fell 15% y/y, from $288.9 million to $244 million.

Windstream announced the FCC has approved the company’s acquisition of D&E Communications.  D&E shareholders are expected to vote on the transaction in late September and Windstream expects to close on the transaction in 4Q09 subject to approvals from D&E shareholders and the Pennsylvania Public Utilities Commission.

“Our team continues to do an outstanding job managing expenses, and I am pleased that we sustained cash flows in a challenging economic environment,” said president and CEO Jeff Gardner.  “We also are making progress on integration planning with D&E while the approval process for the transaction moves forward. D&E is a solid company and a good strategic and geographic fit with our Pennsylvania operations.”

2Q09 Operating Highlights

  • Total access lines declined 41,000 in the quarter to 2.9 million, a decline of 5% y/y from 3.1 million
  • Added 15,000 new high-speed Internet customers in 2Q, bringing total customer base to 1,025,000, a 10% y/y increase
  • Overall broadband penetration reached 35% of total access lines
  • Residential broadband penetration reached 51% of primary residential lines
  • Added more than 16,000 new digital TV customers in 2Q, bringing total customer base to 312,000, representing 18% penetration of primary residential lines

2Q09 Financial Highlights

  • Operating income of $244.4 million, down 15% from $288.9 million in 2Q08
  • Net cash from operations declined 3% year-over-year to $284 million
  • OIBDA of $379 million, down 9% y/y
  • Average service revenue per customer was essentially unchanged y/y at $80.14
  • Capex of $77 million essentially unchanged y/y

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