Windstream profit falls 21% in 2nd quarter

Windstream Corp. on Thursday posted second-quarter net income of $40 million, down 21.5 percent from the $51 million profit reported the same time last year.

The Little Rock-based telecommunications firm's profit came to 6 cents per share, down from 9 cents per share in the same quarter of 2012.

Revenue came to $1.51 billion, down 2 percent from $1.53 billion the previous second quarter. Strategic revenue, which comprises total business and consumer-broadband revenue, grew 3 percent in a year-over-year comparison and makes up 71 percent of the company's revenue.

"Our strategy to reposition Windstream in growth areas is driving steady results," said President and CEO Jeff Gardner said in a statement. "Additionally, we continue to strike a prudent balance among reinvesting in the company, paying an attractive dividend and reducing debt over time."

The Little Rock-based telecommunications firm also announced it is exploring forming a holding

company to become the new publicly traded parent of Windstream and its subsidiaries.

"The modified ownership design would enhance Windstream's corporate structure, strengthen its credit profile and provide greater financial flexibility. The revised corporate structure would mirror that of similar large companies," the company said in the statement.

The firm said that formation of the holding company wouldn't change Windstream's current dividend practice.

Windstream's board of directors Wednesday announced the company would maintain its 25-cent-per-share quarterly dividend. The company also named Bob Gunderman treasurer and senior vice president of financial planning.

The company plans a conference call for 7:30 a.m. Thursday to review the company's second-quarter earnings.

Those interested in listening may dial (877) 374-3977 at least 10 minutes before the start time and use the conference 94495775 or may visit http://www.windstream.com/investors, the company said. A replay of the call will be available from 10:30 a.m. Thursday until midnight Aug. 15 and may be heard at (855) 859-2056 using the ID 94495775.

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