April 30 Telecom network provider Level 3
Communications Inc raised its forecast for 2014
adjusted EBITDA growth and free cash flow after reporting a much
better-than-expected quarterly profit.
Level 3 Communications shares rose 8 percent in premarket
The company said it now expects adjusted earnings before
interest, taxes, depreciation, and amortization to grow 14-18
percent, up from its previous forecast of an 11-14 percent
growth due to higher revenue from its core network services.
Level 3 also raised its free cash flow forecast to $250
million-$300 million from $225 million-$275 million.
The company operates and leases out fiber-optic
communications networks to telecom carriers for voice and data
Its content delivery unit targets video distributors and
online portals and competes with Akamai Technologies Inc
and Limelight Networks Inc.
Level 3 reported its second quarterly profit on Wednesday,
helped by a 6 percent rise in core network service revenue,
after years of losses since 2009.
The company posted net profit of $112 million, or 47 cents
per share, in the first quarter ended March 31, compared with a
loss of $78 million, or 36 cents per share, a year earlier.
Revenue increased 2 percent to $1.61 billion.
Analysts on an average had expected earnings of 27 cents per
share on revenue of $1.59 billion, according to Thomson Reuters
Level 3 undertook a cost-cutting program last year, which
included job cuts.
The Federal Communications Commission is weighing rules that
will allow content delivery companies to charge more from
companies such as Netflix for faster Internet speeds,
which could open up further revenue streams for companies like
Level 3 shares were trading at $40.20 before markets opened
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by