Windstream Communications, Inc. issued the following announcement.
Windstream Holdings, Inc., a leading provider of advanced network communications and technology solutions, announced today certain preliminary financial results for the second quarter of 2020.
For the three months ended June 30, 2020, the company’s total revenues and sales were $1.185 billion, operating income was $24.8 million and Adjusted OIBDAR was $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 Kinetic field technicians. Inclusive of the COVID-19 related costs, Windstream’s Adjusted OIBDAR was $420 million, down slightly sequentially, with an adjusted margin of 35.4 percent.
As previously reported, the company added more than 22,000 Kinetic broadband subscribers during the second quarter, representing the company’s highest quarterly net add growth in over a decade.
For the first six months of the year, Kinetic 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.
Windstream will release full second-quarter financial results at 7:30 a.m. CDT Thursday, July 30.
Management also will provide pre-recorded remarks on the company’s results. The remarks will be available via webcast at 7:30 a.m. CDT July 30 on the company’s investor relations website at investor.windstream.com. Financial, statistical and other information related to the remarks also will be posted on the site.
The company’s financial and operating results for the second quarter of 2020 have not been finalized and remain subject to change, and the information set forth herein is preliminary and unaudited. In preparing this information, management made a number of complex and subjective judgments and estimates about the appropriateness of certain reported amounts and disclosures. Our actual financial and operating results for the second quarter of 2020 have not yet been finalized by management. The results presented in this release are not a comprehensive statement of all financial results as of and for the second quarter of 2020. We are required to consider all available information through the finalization of our financial statements and their possible impact on our financial condition and results of operations for the period, including the impact of such information on the complex judgments and estimates referred to above. As a result, subsequent information or events may lead to material differences between the information about the results described herein and the results that will be described in our subsequent quarterly report on Form 10-Q. Accordingly, you should not place undue reliance on these preliminary results.
Original source can be found here.
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