BROOMFIELD — Telecom Level 3 Communications Inc. (NYSE: LVLT) reported a decline in revenue and profit for 2016 compared with 2015, as it prepares to be acquired by CenturyLink (NYSE: CTL) in a deal valued at $34 billion.
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“With integration planning well underway, we continue to gain excitement about the combination with CenturyLink,” Jeff Storey, Level 3’s chief executive, said in a prepared statement. “Adding Level 3’s global network, advanced solutions and proven experience serving large, multinational customers to CenturyLink’s extensive capabilities will enhance value for all of our customers, as well as our stockholders.” The company has spent $15 million on acquisition-related expenses.
For the full-year 2016, The Broomfield-based telecom posted revenue of $8.17 billion compared with $8.23 billion for 2015. Profit for the year was $677 million compared with $3.4 billion for 2015, which included a noncash benefit to the fourth-quarter 2015 income-tax expense of approximately $3.3 billion related to the release of a valuation allowance against U.S. federal and state deferred-tax assets. Earnings per share was $1.87 compared with $9.58 in 2015.
In the fourth quarter of 2016, the company generated a profit of $250 million on revenue of $2.03 billion and earnings per share was 70 cents. In the same quarter a year ago, Level 3 posted revenue of $3.3 billion driven by the valuation allowance. It had revenue of $2.05 billion and earnings per share was $9.33 in that quarter.