Revenue at Broomfield-based Level 3 (NYSE: LVLT) dipped slightly for the year as the telecom firm readies for its $24 billion takeover by Louisiana’s Century Link.
Level 3 reported 2016 revenue of $8.17 billion, compared to $8.23 in 2015. The fourth quarter brought in $2.03 billion, down just a hair from $2.05 billion last year.
“With integration planning well underway, we continue to gain excitement about the combination with CenturyLink,” said Jeff Storey, president and CEO of Level 3, in Wednesday’s conference call.
Yearly earnings of $677 million were down substantially from a year ago, when they were $3.4 billion. That figure was artificially inflated by a one-time, $3.3 billion tax gain.
Earnings per share for the most recent quarter were $0.70, and $1.89 for the year.
Those results were slightly below analysts’ estimates, and shares ended the day down 1.08 percent at $57.55.
Level 3’s stock has been trending up since CenturyLink announced the deal on Oct. 31. CenturyLink’s, meanwhile, has continued to drop after an initial 12 percent decline on Halloween.
It closed Wednesday at $24.43, down nearly 22 percent from $31 in late October.
In earnings also reported Wednesday, CenturyLink brought in $17.5 billion in annual operating revenue, down from $17.9 in 2015.
Operating expenses were down for the year but up 4.5 percent in the fourth quarter to $3.9 billion, pushed up “primarily” by costs related to the Level 3 acquisition, executives said.
“We are not satisfied with these results and are making progress in a number of areas focused on continuing to improve our customer experience and further positioning CenturyLink for long-term growth,” said Glen F. Post, III, CEO and president.
“Our pending acquisition of Level 3 aligns with our network-first focus. As we look to the future, we believe we are well positioned to drive profitable growth and shareholder value.”
The transaction is expected to close by the third quarter of this year.
Shay Castle: 303-473-1626, castles@dailycamera.com or twitter.com/shayshinecastle
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