CenturyTel buys Embarq but posts third quarter loses
CenturyTel will buy its US telecommunications competitor Embarq for $5.8 billion (US dollars) in a stock-by-stock transaction resulting in Embarq shareholders owning around 66 percent of the merged company once the deal is finalised. This acquisition will create a company that will operate in 33 US States. The merged company will have revenue of more than $8.8 billion given the fact that Embarq revenue is more than twice that of CenturyTel’s so far in 2008.
Century Tel posted third quarter 2008 results showing operating revenues that excluded non-recurring items at $650.1 million compared to the same time last year’s posting of $708.3 million. The decline primarily was due to prior lending revenue settlements of $42.2 million in the third quarter upon the termination of regulatory monitoring period.
The $16 million remaining decline reflects the impact of lower access revenue and access line losses revenues, although it more than offset revenue growth related to an increase In high-speed internet subscribers which increased by almost 20,600 new high-street internet customers during 3Q.