LITTLE ROCK, Ark. – Windstream Holdings, Inc., a leading provider of advanced network communications and technology solutions, today reported second-quarter 2020 results.
For the three months ended June 30, 2020, Windstream added more than 22,000 Kinetic broadband customers, representing the company's highest quarterly net add growth in over a decade. For the first six months of the year, Kinetic added more than 40,000 net new broadband customers, surpassing the company's full-year guidance of 40,000 new broadband customers. As a result, the company is increasing its 2020 full-year guidance to 60,000 net broadband customers.
Enterprise strategic revenues grew 24 percent for the first six months of the year compared to the same period a year ago. Sales of strategic products and services, including SD-WAN, UCaaS and OfficeSuite UC, now represent an annualized run-rate of approximately $334 million in revenue.
Windstream received court confirmation June 25 for its plan of reorganization. The company expects to complete its financial restructuring process and emerge as a privately held company later this summer.
Upon emergence, the company will reduce its debt by more than $4 billion or approximately two-thirds and have access to approximately $2 billion in new capital to expand 1 Gig Internet service in rural America and maintain its product and software leadership in SD-WAN and UCaaS for enterprise customers. This deleveraging and new financing will allow Windstream to re-focus its allocation of resources on growing the business and better positioning the company for the long term.
Results under GAAP
Total revenues and sales were $1.19 billion and operating income was $24.8 million. The company reported a net loss of $162.4 million, or a loss of $3.80 per share.
Capital expenditures were $248 million.
The company's available liquidity as of June 30, 2020, was $310 million.
Kinetic service revenues were $502 million and segment contribution margin was $291 million. Kinetic high-speed Internet bundle revenues grew for the second consecutive quarter and were $258 million in the quarter. Kinetic total consumer revenues also increased sequentially and were $287 million in the quarter.
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