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CenturyLink, Inc.

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CenturyLink’s core local phone business has slowed significantly due to the substitution of traditional wireline telephone services by wireless and other competitive offerings and lower long-distance minutes of use. The company continues to suffer from declining access lines and broadband subscriber losses. Going forward, high debt level is likely to put pressure on the company's operating margin. Also, changes in technology compel large investments, affecting cash flow. Stiff competition from cable TV operators and other wireless firms further reduce the company's price control over products. Moreover, the company’s shares have underperformed the industry over the past year. However, the company’s focus on establishing itself as a global leader in cloud infrastructure and hosted IT solutions arena is commendable.

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