CenturyLink reported revenue of $5.78 billion for the fourth quarter of 2018, compared to $6.01 billion for the fourth quarter of 2017 on a pro forma basis. Diluted loss per share was ($2.26) for the fourth quarter of 2018, compared to diluted earnings per share of $1.06 for pro forma fourth quarter 2017. There was a non-cash goodwill impairment charge for the consumer business of $2.726 billion in the fourth quarter of 2018.
In addition, CenturyLink’s Board of Directors announced plans to reduce the company’s annual dividend to $1.00 from $2.16, beginning with the Board’s next dividend declaration.
“CenturyLink’s focus on disciplined execution in 2018 enabled us to make significant progress integrating Level 3, including achieving our originally announced synergy target more than two years earlier than expected,” said Jeff Storey, president and CEO of CenturyLink. “In 2019, we are shifting our focus from integration to transformation. We are focused on profitable revenue growth in our business markets and believe the scope and scale of our global assets, along with our innovative product portfolio, position us to succeed.”
“In addition to this focus on growth, we are shifting our capital allocation priorities and reducing the annual dividend to $1.00 from the current $2.16. Strong business fundamentals allow us to make the important decision to lower our leverage target to 2.75x to 3.25x Net Debt to Adjusted EBITDA and accelerate our timeframe to reach that target, while still returning significant cash to shareholders and continuing to invest in revenue and EBITDA growth initiatives.”
On a conference call, CenturyLink disclosed plans to raise its CAPEX spending by approximately $500 million to expand its fiber networks, enhance its enterprise portfolio, etc.
