Revenue during the quarter went down marginally by 0.15 percent to $2,048 million from $2,051 million in the previous year period. Total expenses were 83.54 percent of quarterly revenues, up from 82.35 percent for the same period last year. That has resulted in a contraction of 119 basis points in operating margin to 16.46 percent.

Operating income for the quarter was $337 million, compared with $362 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $705 million compared with $710 million in the prior year period. At the same time, adjusted EBITDA margin contracted 19 basis points in the quarter to 34.42 percent from 34.62 percent in the last year period.

"In the first quarter 2017, we continued to grow our enterprise Core Network Services revenue and we remain focused on delivering profitable growth," said Jeff Storey, president and CEO of Level 3. "In addition, we continue to make good progress and are working hard on integration planning, so the combined company can execute quickly after the transaction closes."

The company has spent $368 million cash to meet investing activities during the quarter as against cash outgo of $1,125 million in the last year period.

The company has spent $44 million cash to carry out financing activities during the quarter as against cash inflow of $764 million in the last year period.

Cash and cash equivalents stood at $1,947 million as on Mar. 31, 2017, up 93.92 percent or $943 million from $1,004 million on Mar. 31, 2016.

Debt comes down
Level 3 Communications, Inc. has recorded a decline in total debt over the last one year. It stood at $10,888 million as on Mar. 31, 2017, down 6.55 percent or $763 million from $11,651 million on Mar. 31, 2016. Interest coverage ratio deteriorated to 2.51 for the quarter from 2.68 for the same period last year.