CenturyLink reported operating revenues for third quarter 2014 of $4.514 billion compared to $4.515 billion in third quarter 2013. Core revenues were $4.08 billion, a 0.6% year-over-year decline, compared with a 1.0 % year-over-year decline in third quarter 2013. Revenue from high-bandwidth data services grew approximately 17% year-over-year across business and wholesale customers. GAAP net income for third quarter 2014 was $188 million compared to a net loss of $1.05 billion for third quarter 2013, and diluted earnings per share for third quarter 2014 was $0.33 compared to a net loss per share of $1.76 for third quarter 2013.
Some highlights by customer segment
Consumer
- Revenue growth driven by increased high-speed Internet and CenturyLink Prism TV customers.
- Strategic revenues were $712 million in the quarter, a 6.4% increase over third quarter 2013.
- Generated $1.49 billion in total revenues, a decrease of 0.8% from third quarter 2013, reflecting the continued decline in legacy services offsetting the growth in strategic services.
- Added approximately 14,000 CenturyLink Prism TV customers during third quarter 2014, increasing penetration of the more than 2.2 million addressable homes to approximately 10.3%.
Business
- Revenue growth driven by continued demand for high-bandwidth data services and solid sales momentum.
- Strategic revenues were $677 million in the quarter, a 6.1% increase over third quarter 2013, driven by strength in high-bandwidth offerings such as MPLS, Ethernet and Wavelength services.
- Generated $1.57 billion in total revenues, an increase of 1.6% from third quarter 2013, as growth in high-bandwidth offerings and data integration revenues offset lower legacy services revenues. Data integration revenues were $22 million higher in third quarter 2014 compared to third quarter 2013.
- Continued strong sales momentum in third quarter with solid sales funnel entering fourth quarter and continued success in sales of Managed Office and Managed Enterprise solutions.
Wholesale
- The Wholesale segment ended the quarter with approximately 21,000 fiber-connected towers, an increase of 17% from third quarter 2013.
- Strategic revenues were $560 million in the quarter, down slightly from third quarter 2013, as increases in wireless carrier bandwidth demand and Ethernet sales were offset by declines in low-speed data revenues.
- Generated $843 million in total revenues, a decrease of 4.0% from third quarter 2013, reflecting the continued decline in low-speed data revenues and in legacy revenues, primarily driven by lower long distance and switched access minutes of use, along with access rate reductions from implementation of the CAF Order.
- Completed approximately 1,200 fiber builds in third quarter 2014 and remain on track to complete approximately 2,500 for full-year 2014.
Hosting
- The Hosting segment grew managed hosting (including cloud) and colocation revenues as cross-selling initiatives and product enhancements continue to strengthen sales opportunities.
- Operating revenues were $361 million in the quarter, a 5.6% increase from third quarter 2013.
- Managed hosting revenues were $147 million, representing a 14% increase from third quarter 2013, and colocation revenues were $163 million, a 4.5% increase over the same period a year ago.
- Launched new private cloud service available on the same industry-recognized platform as CenturyLink’s public cloud service, enabling new hybrid IT capabilities.