Windstream 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
