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What Are CenturyLink’s Major Long-Term Growth Drivers?

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Part 4
What Are CenturyLink’s Major Long-Term Growth Drivers? PART 4 OF 9

CenturyLink’s Core Revenues Remain Pressured in 2Q17

CenturyLink’s core revenues in 2Q17

In the previous part of this series, we learned that CenturyLink’s (CTL) total operating revenues fell ~7.0% year-over-year (or YoY) to reach $4.1 billion in 2Q17. The decreasing trend in CenturyLink’s core revenues continued during 2Q17 as well.

Core revenue is defined as strategic revenue plus legacy revenue streams, excluding data integration and other items. CenturyLink reported total core revenues of $3.7 billion in 2Q17, an ~7.9% reduction year-over-year.

CenturyLink’s Core Revenues Remain Pressured in 2Q17

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CTL’s decrease in core revenues is mostly due to the decline in legacy revenues and the decline in broadband subscribers being higher than expected. CenturyLink’s legacy revenues fell ~9.7% YoY to reach $1.7 billion.

CenturyLink’s strategic revenues fell ~6.2% YoY to reach $1.9 billion in 2Q17. In 3Q17, the carrier anticipates reporting core revenues between ~$3.6 billion and ~$3.7 billion.

Level 3 Communications acquisition

Level 3 Communications is considered the world’s largest Internet backbone. As a result, CenturyLink’s acquisition of Level 3 Communications would add value to its top line.

Also, CenturyLink is continually upgrading its network infrastructure to challenge established peers such as AT&T (T) and Verizon (VZ). In an effort to bolster its infrastructure, CenturyLink acquired landline assets worth $6.0 billion from Sprint (S).

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