Back to top

Analyst Blog

Telecom service provider, CenturyLink Inc. (CTL - Analyst Report) has announced that in the upcoming 2014 International Consumer Electronics Show from Jan 7–10 in Las Vegas, the company will demonstrate Prism TV applications on new LG Smart TV products. This promotion will be followed by CenturyLink’s pilot project onPrism TV applications by the end of this year.

We believe that highlighting of the latest development in Prism TV would spread awareness among customers regarding the company’s products and their features. As a result, it would lead to customer addition, and ultimately supporti the top line.  

CenturyLink’s Prism TV service is performing well and is expected to compensate for the revenue loss due to reduction of single play voice customers. CenturyLink also remains committed to take Prism TV service to additional markets. The company’s strategic revenues were high in the third quarter based on increased Prism TV subscriber addition and rate hikes on selected services.

Apart from Prism TV, CenturyLink is concentrating on expanding the business base of its subsidiary Savvis, which has contributed immensely in uplifting the performance level of the former through its cloud computing and managed hosting solutions for enterprises. In this regard, CenturyLink acquired Platform-as-a-Service (PaaS) provider – AppFog Inc. This acquired unit – which extends custom-made PaaS capabilities to software developers and public cloud services through www.appfog.com – will augment the product portfolio of Savvis. We view this acquisition as a growth driver as AppFog's high-quality Platform-as-a-Service offerings along with Savvis' industry-leading infrastructure base will likely create a secure and reliable network for developing applications in the cloud.

Additionally, the demand for managed hosting solutions from customers remains strong as these look to reduce expenses and enhance efficiency by using these products. CenturyLink also extended its partnership with VMware, Inc. (VMW - Snapshot Report) to introduce the vCloud Hybrid service in its North American Savvis Data Center.

CenturyLink currently has a Zacks Rank #3 (Hold).

Other Stocks

Other Stocks In this category Better-ranked stocks in the industry include ID Systems Inc. (IDSY - Snapshot Report) and Inteliquent, Inc. (IQNT - Snapshot Report). Both carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.