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Windstream CEO Jeff Gardner on the company’s shift towards its broadband service and its enterprise business from its traditional landline service.
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Of wind stream -- down after reporting a fourth quarter loss related to its charges in its pension plan accounting but.
It's top client got a big boost this is a rural Telecom company there in 29 different states.
And they keep pushing for what may be some of you out there might think is seemingly ancient land line technology.
We'll be forced to go to wireless or are they smarter then yeah.
A lot of you think joining us now out of Fox Business exclusive from Little Rock, Arkansas is Jeff Gartner.
CEO and president of Windstream welcome and thank you for joining us.
Think endless pleasure -- -- old school I have a couple of land -- but they're actually hit it out of their wireless but.
With the handle.
I'm I have sticks in my house -- -- again.
Revealed style not they're not -- by the way but -- talk about that part.
Are you be forced at some point -- -- ready to do that where you eventually do go all wireless because a lot of people in America who are now shunning.
The landline.
But -- our business has changed tremendously over the last five years and since 2006 when Windstream -- formed.
We've been very focused on a transformation recognizing the fact that the voice wireline business was changing.
The direction of our company tilted entirely towards to new areas of growth which are broad band.
Which customers are growing and using more and more every day true up that business is growing incredibly well almost a 10% in our business today.
In the enterprise space we -- an acquisition last year of a company called pay -- and now.
70%.
Of wind streams revenues are coming from broad -- in business.
Less than 20% it's from the traditional wireline company so were very different business today and in fact we are very proud today.
That in the fourth quarter we put reported both revenue and nobody dot gains year over year based on the strategy of focusing on business is they're growing.
Well the -- so you're obviously morphing into what people are trying to soak up like sponges and that is broad band.
Another attractive point about your stock is that you kick off about an 8% dividend that's not bad at all but I was looking through your numbers you've got about seven billion in debt -- I always ask this question.
How long are you able to sustain that very attractive dividend or at some point are you going to have to.
Cut back -- stop raising.
-- work we've never been in better shape with respect to our dividend.
When we started Windstream as a wire line company rural wireline company focused mostly on land line.
Several years ago was more of a -- -- play to come up with our dividend.
Today we offer investors a very different opportunity which is one where you can see get the growth from our focus on the enterprise and broadband space.
And still get one of the highest dividend yields -- in the S&P 500 -- -- I think our stock has performed very well.
Over the last five years in the Telecom states we expect that continue.
I'm hearing so much optimism Jeff in this on a day where the Obama administration has proposed cutting.
The top corporate tax rate to about 28%.
From 35%.
And then their questions about whether that truly is in essence when you eliminate all of the loopholes.
A tax hike on some corporations where do you stand on -- you worried about better do you feel that you could succeed no matter what the atmosphere -- Well we can succeed I I feel very confident about the fundamentals of our business our strategy -- right we've got the right people were in the right markets.
The tax policy does matter we've been dealing with a very short term tax policy for many years going lower is better.
We're concerned about the long term strategies so I'll be very happy to gets a more long term permanent view certainly helpful for our investors.
To really make decisions about the company in particular we're focused on dividends and where.
Treating dividends the same as -- T.
Treat capital gains.
And that's very important to us in the long run Jeff Gardner CEO and president of Windstream and good to see you add up all hold -- to my landline.
Think -- not sure about my crew here they're all young -- with a wireless good to see if they can sometimes right.
