AT&T, Inc. (NYSE:T) [Detail Analytic Report] disclosed that it has awarded portal services contract to Synacor Inc., according to WSJ. AT&T reported in a statement that they have agreed to have Synacor manage their next-generation att.net portal, AT&T-branded applications, and search. The contract effectively moves a biggest chunk of AT&T’s business away from Yahoo! Inc. (NASDAQ:YHOO). Yahoo will continue to host email for AT&T customers, though citing people familiar with the deal stated that is a fraction of its prior business with the telecom giant. A spokeswoman for Yahoo stated that AT&T is still a valued partner but declined to provide further details.
Chief Executive of Synacor, Himesh Bhise commented that they are honored to have been selected from among the contenders AT&T considered in their evaluation process. They are excited that AT&T will be using their managed portal services, mobile apps, and advertising solutions in this significant initiative to deepen engagement with their customers. They already are developing initial products for deployment in this year, and have started working on a next-gen product for next year.
Sameet Sinha, analyst at B. Riley & Co, estimates the AT&T alliance generated around $100 million in annual revenue for Yahoo. The contract had given AT&T broadband customers access to Yahoo’s search engine and other media services on the default AT&T website. Yahoo and AT&T had been splitting the search and display ad revenue from the site. For Yahoo, the collaboration brought in hundreds of millions of dollars in revenue over its life, a major portion of which went straight to the bottom line, Sinha estimates.
Chief Executive and President of CenturyLink, Inc. (NYSE:CTL) [Detail Analytic Report], Glen F. Post commented during first quarter earning call that they achieved another solid quarter, with core revenues, operating cash flow and adjusted diluted earnings per share in-line with their prior guidance. Additionally, since the first of the year, they have completed two debt issuances totaling over $1.2 billion, which strengthens their ability to invest in their business while returning cash to investors.
Post added they remain on track with their data centers and colocation business strategic alternatives process and are pleased with the level of interest and progress to date. They continue to focus on leveraging their strategic asset portfolio and financial strength to execute on their operational initiatives and better serve their customers, according to Post.
CenturyLink declared net income of $236 million in its first quarter. CenturyLink reported that it had net income of 44 cents a share. Earnings, revised for amortization costs and non-recurring costs, came in 71 cents a share. The results topped Wall Street outlooks. The average estimate of experts polled by Zacks Investment Research was for earnings of 68 cents a share. The firm announced revenue of $4.4 billion in the quarter, which missed Street forecasts. For the current period completing in July, CenturyLink expects its earnings to be 57 to 62 cents a share. CenturyLink disclosed that it expects revenue in the range of $4.38 to $4.43 billion for the current fiscal quarter. Shares of CenturyLink have soared 23 percent since the starting of the year, while the S&P 500 index has stayed nearly flat.