CenturyLink reveals slowing revenue decline in 2012

14 Feb 2013

US fixed line and broadband provider CenturyLink has released its financial results for the three- and twelve-month periods ended 31 December 2012, with the operator’s CEO and president, Glen F. Post, III, saying of the performance: ‘We are pleased with our fourth quarter and full-year results, which reflect the continued execution of our strategy to focus on investing in our key growth drivers to further stabilise our top-line revenue while aligning our operating costs with revenue and growth opportunities.’

In the last quarter of 2012 CenturyLink generated operating revenues of USD4.58 billion, down 1.5% year-on-year compared to the USD4.65 billion it registered in 4Q11, with the operator attributing the decline to ‘lower legacy services revenues primarily due to the impact of access line losses and lower access revenues’. Full year operating revenue meanwhile fell to USD18.4 billion in 2012, down from USD18.7 billion for pro forma FY2011. Adjusted net income in FY2012, excluding special items, was USD1.66 billion, up marginally from the USD1.63 billion CenturyLink posted in FY2011.

Looking to the year ahead, CenturyLink expects to see declines in both operating cash flow and free cash flow in FY2013, ‘primarily driven by the impact of the decline in legacy revenues, along with a lower level of incremental synergies in 2013 compared to the level of incremental synergies achieved in 2012’.

In operational terms, at the end of December 2012 CenturyLink had 5.848 million broadband subscribers, up from 5.652 million a year earlier, while the number of customers signed up to its ‘Prism’ IPTV service stood at almost 115,000, up by around 10,000 in the last quarter. Fixed line accesses, however, continued to decline, and at end-2012 CenturyLink reported 13.748 million such connections, down 5.7% year-on-year from 14.584 million.

United States, Lumen Technologies (incl. CenturyLink)