CenturyLink’s capital expenditure
Let’s evaluate CenturyLink’s (CTL) spending on capital expenditures (or capex). The telecom company invests in its network to provide enhanced speeds as well as to boost fiber-optic connectivity.
CenturyLink expects these enhancements to allow it to compete with Comcast (CMCSA), Frontier Communications (FTR), and other top cable companies in the market. In the first quarter, CenturyLink spent $0.8 billion on capital expenditures.
Expected capex investments in 2018
CenturyLink’s management hasn’t provided any specific capex guidance range for fiscal 2018 except to state that its capital expenditure is likely to comprise ~16.0% of revenues.
In comparison, Windstream (WIN) and Frontier Communications are expected to spend ~$0.80 billion and ~$1.2 billion, respectively, on capital expenditures in fiscal 2018. However, integrated US telecom players AT&T (T) and Verizon (VZ) are expected to spend ~$25.0 billion and ~$17.8 billion, respectively, on capex in 2018.
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