The first quarter of 2015 has not been a good business period for top American Internet service provider CenturyLink.
In the results released recently, it shows that the company managed to generate $1,735 million from adjusted cash from operations which was a drop from $1,788 million in a similar period last year. For the adjusted free cash flow, CenturyLink reports that its earnings reached $849 million which is a drop from last year’s $860 million.
On liquidity, the company posted some improvements compared to the close of 2014. Their cash as well as cash equivalents hit $155 million in the first quarter of 2015 which is an improvement from $128 million they had at the end of last year. Their debt has skyrocketed to $20,456 million from $20,121 million with a slight change on the debt-to-capitalization ratio. There was a drop of 0.8% in the customer segment revenues as it now stands at $1,497 million.
The quarterly financial results equally show some worrying trend as far as subscriber base for CenturyLink is concerned. By the close of first quarter for this year, number of access lines had dropped to 12.270 million which represents a 4.8% drop. Their broadband customer base improved by one percent to 6.117 million while Prism TV customers improved by 25.1% to stand at 0.249 million. Despite the mixed posting, CenturyLink is very much hopeful that things will turn for good in the second quarter once review comes up.
They have projected an operating cash flow of between $1.67 billion and $1.72 billion. Most of the Internet service providers have not released their first quarterly financial figures but it’s highly expected to follow the same line considering they operate under the same market environment and regulations. The bold meaning of all this is that companies should brace themselves for a tough year in business.