Windstream Announces Preliminary Q2 2020 Results

Windstream Holdings, Inc., a provider of advanced network communications and technology solutions, has announced certain preliminary financial results for the second quarter of 2020, the company said.

For the three months ended June 30, 2020, the company´s total revenues and sales were USD 1.185 billion, operating income was USD 24.8 million and Adjusted OIBDAR was USD 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 USD 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 USD 420 million, down slightly sequentially, with an adjusted margin of 35.4 percent.

The company added more than 22,000 Kinetic broadband subscribers during the second quarter, representing its 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 USD 502 million during the quarter. Kinetic segment contribution margin of USD 291 million in the quarter includes the COVID-19 costs incurred.

Windstream Holdings is a provider of advanced network communications and technology solutions. Windstream provides data networking, core transport, security, unified communications and managed services to mid-market, enterprise and wholesale customers across the US. Additional information is available at windstream.com or windstreamenterprise.com.