Windstream Corporation today reported total revenues and sales of $1.54 billion, operating income of $239 million and net income of $54 million, or 9 cents per share, in the second quarter of the year.
That compares to net income of $97 million, or 19 cents a share, for the same period in 2011, a 44 percent drop.
The Little Rock, Ark.-based telecommunications firm, which bought out Iowa Telecom two years ago, also reported that business services revenues were up 2 percent to $893 million, data and integrated services revenues were up 8 percent from a year ago at $377 million and carrier service revenues were up 5 percent at $164 million on a year-over-year basis. Consumer broadband service revenues were $114 million, up 4 percent from the same period in 2011 on a pro forma basis.
"Our teams once again delivered solid results in the key area of business sales and consumer broadband during the second quarter," said Windstream president and CEO Jeff Gardner. "We continue to make important investments in our network, particularly in fiber-to-the-tower projects, to further improve our financial profile."
Gardner said with the expected cost savings from the acquisition of Rochester, N.Y., based PAETEC, as well as its management reorganization effort, that the company should see improvements in revenues for the remainder of the year, especially in the fourth quarter.
In May, Windstream announced plans to restructure its management footprint across all its operations that is expected to result in the elimination of 375 to 400 management positions, or roughly 3 percent of its workforce of 14,500, when completed in the third quarter of the year. The restructuring is expected to result in annualized savings of $30 to $40 million a year.
The company's board of directors declared a 25-cent dividend for the 25th consecutive quarter since the company's formation as a spinoff from Alltel Corp., in 2006.