(RTTNews) - Telecommunications company CenturyLink (CTL: News ) Thursday reported an increase in third quarter profit on an increase in revenues, driven by the Embarq acquisition, as well as a growth in high-speed internet customers. Earnings for the quarter came in way ahead of analysts' expectations, though revenues fell short of estimates. Looking ahead, the company provided its fourth quarter guidance with earnings indicated to come in line with expectations, while revenues are expected to fall short of estimates. CenturyLink also raised its full year earnings outlook that is way ahead of current Street forecast.

CenturyLink reported a third quarter GAAP net income attributable to the company of $280.84 million or $0.94 per share, compared with $84.73 million or $0.83 per share in the corresponding quarter a year-ago.

Adjusted net income for the quarter was $269.05 million or $0.90 per share, compared to $82.76 million or $0.81 per share in the year-ago period. On average, fifteen analysts polled by Thomson Reuters expected the company to earn $0.81 per share for the quarter. Analysts' estimates typically exclude special items.

The Monroe, Louisiana based company recorded total operating revenues for the quarter of $1.87 billion, a jump from $650.07 million in the year-ago period. Twelve Street analysts' estimated revenues of $1.88 billion for the quarter.

Revenue increase during the quarter was primarily due to $1.299 billion of revenue contribution from the Embarq acquisition completed on July 1. Revenue increases were also driven by growth in high-speed Internet customers and favorable prior period revenue settlements.
Revenues were also partially affected due to the impact of access line losses and lower access revenues, along with the elimination of $53 million of revenues related to the discontinuance of regulatory accounting for certain regulated operating entities during the third quarter 2009.

On a GAAP basis, total operating expenses for the quarter, which includes the cost of services and products, selling, general and administrative expenses and depreciation and amortization increased to $1.49 billion from $469.34 million in the year-ago period.

Third quarter earnings reflect after-tax costs associated with the Embarq acquisition of $127.5 million or $0.43 per share, compensated by a net after-tax benefit of $133.2 million or $0.44 per share attributable to the extraordinary gain recognized upon the discontinuance of regulatory accounting and an after-tax benefit of $6.1 million or $0.02 per share related to the favorable resolution of certain transaction tax audit issues.

The company, which added more than 43,500 high-speed Internet customers during the quarter, said that it achieved a 16% improvement in access line performance compared with line losses in the comparable period year-ago.

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