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November 5, 2015

CenturyLink could sell off entire data centre fleet

News: Advisors hired as it seeks strategic alternatives for 59 sites worldwide.

By Joao Lima

US Telecom and data centre colo giant CenturyLink is considering selling its entire global data centre fleets as it looks for a new strategy around network, hosting, and managed services.

The company said it has retained financial advisors to assist in the exploration of strategic alternatives for its sites and collocation business operations.

CenturyLink owns five data centres in the UK consisting of campuses in London Docklands, Slough and Reading. Together, the facilities boost 538,146 sq ft of commercial space, with 41.5 MW of total power.

The firm said it plans to continue in the data centre and colo market, but has started the review process which involves options such as partnerships, the sale of all or a portion of its data centres, as well as keeping data centre assets as part of its portfolio.

CenturyLink currently owns 59 data centres in North America, Asia and Europe with more than 185 MW of power across 2.6 million sq ft of total raised floor capacity.

Glen F. Post III, CEO of CenturyLink, said: "We expect collocation services to remain part of our service offerings, but we do not believe ownership of the physical data centre assets is necessary to effectively deliver those services.

"We have not set a timetable for completion of this process and will take the time necessary."

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CenturyLink first entered the data centre space in 2011 following the acquisition of provider Savvis for $2.5 billion.

Company revenues grow in Q3

The company has also posted its Q3 results with operating revenues up to $4.55 billion compared to $4.51 billion in the third quarter of 2014.

Total revenues between January and September 30 this year reached $13.4 billion, down from $13.59 over the same period last year.

Operating expenses decreased to $3.82 billion from $3.87 billion in Q3 2014. The company said the yoy decrease was primarily driven by lower depreciation and amortisation expenses, a reduction in workforce and lower customer premise equipment costs.

CenturyLink also posted $656 million as operating income, $37 million more than in Q3 last year.

Adjusted net income for third quarter 2015 was $390 million compared to $359 million in Q3 2014.

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