Stock of Broomfield-based Level 3 Communications shot up more than 15 percent to $5.18 Tuesday after company executives said they are raising financial projections based on strong demand for broadband webcasts and Internet-based phone service.
Analysts said CBS’ recent Internet broadcasts of NCAA basketball tournament games are giving webcasts a high profile.
“With 45-50 percent of customers having broadband access, things like the NCAA games are more real,” said Donna Jaegers, a telecommunications analyst at Greenwood Village-based Janco Partners. “All the fiber (Level 3) put in the ground in 2000 and 2001, now we’re seeing demands for it.”
Level 3 said Tuesday it also expects to benefit more quickly than it expected from buying rival WilTel Communications of Tulsa, Okla., in late 2005 in a $680.5 million deal.
“We reached some of the benchmarks and exceeded others,” said company spokesman Chris Hardman.
The company forecast operating income for 2006 before depreciation and amortization at between $140 million and $150 million. That’s up from its previous estimate of $105 million to $125 million.
Staff writer Beth Potter can be reached at 303-820-1503 or bpotter@denverpost.com.
