NEW YORK (TheStreet) -- Level 3 Communications (LVLT) stock is down 2.1% to $1.40 about an hour into the regular trading session, after the company reported in-line earnings outcome and provided expectations of an increase in capital expenditure this year.

Based on the opportunities Level 3 Communications sees now to profitably grow the company's revenues, it's expecting capital expenditures to increase in this year, compared to last year; it expects to be free cash flow negative for the full-year. Meanwhile, Level 3 also expects churn to continue to show improvement for the rest of the year.

Net loss for Level 3 for the first quarter was $238 million, or 14 cents a share, versus net loss of $132 million or 8 cents a share in the previous quarter. Excluding a loss of $54 million, or 3 cents a share on the extinguishment of debt, net loss for Level 3 was $184 million, or 11 cents a share, and in line with the consensus.

Level 3 Communications reported consolidated revenue of $910 million for the first quarter, less than consolidated revenue of $980 million the previous year, but beating the average estimate of $907.72 million.

"We are encouraged by the positive improvement we've seen this year for both sales and churn," Level 3 chief James Crowe said. "Ongoing broadband demand is providing sales opportunities across the company. And our continued improvements in customer experience are paying off, contributing to a decline in disconnects. We remain focused on execution, and will continue our disciplined approach to increasing our investments to take advantage of these market opportunities."

-- Reported by Andrea Tse in New York

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