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Internet, Phone and TV provider Windstream ups full year free cash flow forecast

Published: 03:53 05 Nov 2010 AEDT

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High speed Internet, Phone and digital TV services provider Windstream (NASDAQ:WIN) raised its full year free cash flow outlook from US$770 to $810 million to US$814 to $859 million primarily due to expected tax savings and extended bonus depreciation rules. The company now expects its dividend payout ratio to fall from 57-60% to 57% as a result.


During the third quarter, Little Rock, Arkansas based Windstream added approximately 15,700 new internet customers and 13,000 digital TV customers on a pro forma basis. The company total internet customer base at the end of third quarter was 1.29 million, up 8% year-over-year, while total digital TV customers hit 433,000. The company’s phone lines business lost 30,700 customers, a 3.7% year-over-year decline to 3.3 million.


"I am very pleased with our third quarter results. We are executing well on all fronts as evidenced by the improving revenue trends in both our business and consumer channels. In addition, our integration efforts of recent acquisitions are proceeding as planned," said Jeff Gardner, Windstream president and CEO.


Under GAAP (Generally Accepted Accounting Principles) Windstream reported total third quarter revenues of US$966 million, up 32% from Q3 2009, and net income of $85 million, a rises of 7%.  Capital expenditures also rose by 68% to $113 million.


Under pro forma results, the numbers looked quite different.   Total revenues slipped 1.5% to $966 million, operating income climbed 13% to $282 million and OIBDA rose 5% to $462 million. Capital expenditures were $113 million, a 20 percent increase from a year ago.

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