Revenue during the quarter dropped 4.18 percent to $4,289 million from $4,476 million in the previous year period. Gross margin for the quarter contracted 219 basis points over the previous year period to 55.02 percent. Total expenses were 90.86 percent of quarterly revenues, up from 83.22 percent for the same period last year. That has resulted in a contraction of 764 basis points in operating margin to 9.14 percent.

Operating income for the quarter was $392 million, compared with $751 million in the previous year period.

However, the adjusted operating income for the quarter stood at $594 million compared to $766 million in the prior year period. At the same time, adjusted operating margin contracted 326 basis points in the quarter to 13.85 percent from 17.11 percent in the last year period.

"CenturyLink achieved significant progress on our operational initiatives in 2016; however, full-year 2016 operating revenues and cash flows were below our expectations, primarily due to lower strategic revenue growth," said Glen F. Post, III, CenturyLink chief executive officer and president. "We are not satisfied with these results and are making progress in a number of areas focused on continuing to improve our customer experience and further positioning CenturyLink for long-term growth."

For financial year 2017, CenturyLink, Inc. expects revenue to be in the range of $17,050 million to $17,300 million. The company projects diluted earnings per share to be in the range of $2.10 to $2.30 on adjusted basis.

For the first-quarter, CenturyLink, Inc. expects revenue to be in the range of $4,230 million to $4,290 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.51 to $0.57 for the first-quarter.  

The company has spent $2,994 million cash to meet investing activities during the year as against cash outgo of $2,853 million in the last year. It has incurred net capital expenditure of $2,951 million on net basis during the year, up 3.87 percent or $110 million from year ago.

The company has spent $1,518 million cash to carry out financing activities during the year as against cash outgo of $2,301 million in the last year period.

Cash and cash equivalents stood at $222 million as on Dec. 31, 2016, up 76.19 percent or $96 million from $126 million on Dec. 31, 2015.

Working capital remains negative
Working capital of CenturyLink, Inc. was negative $187 million on Dec. 31, 2016 compared with negative $1,954 million on Dec. 31, 2015. Current ratio was at 0.97 as on Dec. 31, 2016, up from 0.58 on Dec. 31, 2015.

Debt comes down marginally 
CenturyLink, Inc. has recorded a decline in total debt over the last one year. It stood at $19,688 million as on Dec. 31, 2016, down 2.66 percent or $537 million from $20,225 million on Dec. 31, 2015. Total debt was 41.87 percent of total assets as on Dec. 31, 2016, compared with 42.49 percent on Dec. 31, 2015. Debt to equity ratio was at 1.47 as on Dec. 31, 2016, up from 1.44 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.22 for the quarter from 2.29 for the same period last year.