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Tuesday 09 May 2017 by FIIG Research

Company updates

CenturyLink – Weak 1Q17

THIS CONTENT IS SUITABLE FOR WHOLESALE INVESTORS ONLY

Results summary

Source: Company reports

Main points:

Revenue of USD4.2bn came in below CenturyLink’s guidance of USD4.2 to USD4.3bn, with weakness showing in data integration and IT & Managed Services revenue. Reduced head count lowered costs by USD34m year over year.
EBITDA of USD1.5bn covered USD780m of capex and USD318m of interest expense, leaving USD434m in free cashflow.
According to CreditSights, on a pro forma basis, it calculates gross debt of USD38.9bn, net debt of USD35.7bn and synergised net leverage of 3.6x for the combined company. CreditSights expected pro forma net leverage is one tick higher than its calculation from last quarter, due to the last twelve month EBITDA decline at CenturyLink.
Due to a weak start to the year in Enterprise, CenturyLink expects 2017 revenue and cashflow to come in at the low end of guidance - revenue at USD17.1-USD17.3bn, cashflow at USD6.2-USD6.4bn.

For more information please refer to CenturyLink’s investor relations page.

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