Level 3 Communications Inc. on Wednesday said its first-quarter earnings rose 8.9 percent as the long-haul Internet-connectivity provider benefited from improved demand and its acquisition of TW Telecom.
The Broomfield-based company also raised its 2015 guidance for earnings before interest, taxes, depreciation and amortization — excluding certain items — and now expects growth of 14 percent to 17 percent, compared with its previous projection for an increase of 12 percent to 16 percent.
Level 3 has posted a string of recent quarterly profits thanks to growing demand for bandwidth from its corporate customer base.
The company offers products ranging from basic Internet service to private fiber-optic lines that big Web companies can lease to build their own networks. Level 3 stitched together many of its assets by scooping up the remnants of failed telecommunications providers crippled by the dot-com bust in 2000.
Level 3 has used its acquisition last year of rival TW Telecom to pursue a wider range of business customers in recent months.
Chief Executive Jeff Storey said “Level 3 had a solid start to the year, progressing on integration and generating profitable growth.”
Overall, Level 3 reported a profit of $122 million, or 35 cents a share, up from $112 million, or 47 cents a share, a year earlier. Revenue increased 28 percent to $2.05 billion. Core network services revenue improved by 6 percent excluding currency impacts.
Analysts polled by Thomson Reuters expected per-share profit of 33 cents and revenue of $2.06 billion.
