By Dow Jones Business News,
August 06, 2014, 05:08:00 PM EDT
By Maria Armental
CenturyLink Inc.'s ( CTL ) second-quarter profit fell 28% on higher operating expenses and costs from recent
For the current quarter, the telecommunications company expects adjusted profit of 58 cents to 63 cents a share on
operating revenue of $4.47 billion to $4.52 billion.
Analysts surveyed by Thomson Reuters forecast 64 cents a share and $4.5 billion in revenue.
The company's sales--temporarily boosted from its 2011 acquisition of Qwest Communications and Savvis--have been
declining as a result of lower legacy services revenue, primarily due to the loss of access lines and lower access
The company said last month it has reviewed restructuring options, possibly reclassifying certain assets as real
estate in an effort to cut its annual tax bill following Windstream Holdings Inc.'s (WIN) example, but said no decisions
had been made.
Over all, the Monroe, La., company reported net income of $193 million, or 43 cents a share, compared with $269
million, or 44 cents a share, a year earlier. On an adjusted basis, earnings rose to 72 cents a share from 69 cents a
Operating revenue edged up to $4.54 billion, driven by higher strategic and data-integration revenue.
CenturyLink had forecast profit of 62 cents to 67 cents a share on operating revenue of $4.48 billion to $4.53
billion, in line with analysts' expectations at the time.
The company's income-tax expense was $130 million for the quarter from $125 million a year earlier.
The company added about 16,000 Prism television subscribers during the quarter and lost about 2,100 high-speed
Shares slipped in recent after-hours trading to $38.50. Through Wednesday's close, the company's stock was up nearly
22% for the year.
Write to Maria Armental at firstname.lastname@example.org
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