Windstream reported Q2 preliminary total revenues and sales of $1.185 billion, operating income of $24.8 million and Adjusted OIBDAR of $424 million, representing the third consecutive quarter of sequential growth in Adjusted OIBDAR as total cash operating costs fell by 9 percent year-over-year. Adjusted OIBDAR margin was 35.8 percent, an increase of 80 basis points year-over-year and an increase of 60 basis points sequentially.
Adjusted OIBDAR excludes approximately $4.5 million in COVID-19 related costs, which primarily consisted of pay premiums for its field technicians.
For the first six months of the year, the company’s Kinetic division added over 40,000 net new broadband subscribers, surpassing the company’s previous full-year guidance of 40,000 new broadband subscribers. As a result, the company is increasing its 2020 full-year guidance to 60,000 net broadband subscribers.
Kinetic high-speed data revenues have now grown for two consecutive quarters. As a result, Kinetic’s total consumer revenues also grew sequentially and Kinetic service revenues reached $502 million during the quarter. Kinetic segment contribution margin of $291 million in the quarter includes the COVID-19 costs incurred.
Enterprise service revenues were $577 million in the quarter as strategic revenues reached 15 percent of total Enterprise service revenues during the quarter, an increase of 24 percent year-over-year. Enterprise segment contribution margin was 20.4 percent, essentially flat year-over-year and up 150 basis points sequentially.
Wholesale service revenues totaled $86 million in the quarter and segment contribution margin was $62 million, essentially unchanged from the first quarter of 2020.
