Qwest 1Q earnings rise 37 pct after cost cuts

Apr 29, 2009 By PETER SVENSSON , AP Technology Writer

(AP) -- First-quarter earnings at Qwest Communications International Inc. rose 37 percent, as the phone company was helped by cost-cutting and strong results from its business services unit.

Denver-based Qwest said Wednesday its was $206 million, or 12 cents per share, for the first three months of the year. That rose from $150 million, or 8 cents per share, a year ago.

Revenue fell 7 percent from a year ago to $3.2 billion, as consumers continued to cancel landline service. Qwest has also stopped selling wireless service under its own brand. Excluding that change, revenue fell 5 percent from a year ago. Qwest is now reselling service, which doesn't add to its revenue in the same way.

Thomson Reuters says analysts had been expecting earnings of 8 cents per share on $3.2 billion in revenue.

Qwest shares rose 26 cents, or 7.3 percent, to $3.83 in premarket trading after the release of the results.

Cost-cutting at the company has mainly been in the form of job cuts: Qwest has slashed 10 percent of its work force since last year, ending the quarter with 32,800 employees.

Qwest's local-phone service business, which serves parts of 14 states, had revenue of $1.3 billion, a decline of 11 percent from a year ago. It added 42,000 customers but lost 259,000 phone lines.

Business services were the bright spot for the company, despite a challenging market because of the economy. Revenue rose 3 percent to $1 billion.

Qwest's long-haul business, which carries calls and across the country, saw its revenue decline 11 percent to $752 million, partly due to lower prices.

Qwest said it was sticking to its 2009 projections, still expecting earnings before interest, taxes, depreciation and amortization to be $4.2 billion to $4.4 billion this year. It made the same projection three months ago.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Ticketfly buying WillCall for on-premise data

add to favorites email to friend print save as pdf

Related Stories

Verizon 1st-qtr profit, revenue beat expectations

Apr 27, 2009

(AP) -- Verizon Communications Inc. said Monday its earnings grew 5 percent in the first quarter, boosted by its acquisition of Alltel Corp. and strong demand for its wireless, Internet and TV services.

EBay 1st-qtr profit, sales fall on weak economy

Apr 22, 2009

(AP) -- EBay Inc. said Wednesday the weak economy contributed to declines in both earnings and revenue for the second consecutive quarter, but the online marketplace operator beat analysts' expectations.

AT&T earnings fall, but iPhone cushions the blow

Apr 22, 2009

(AP) -- Cost-cutting and the lure of the iPhone softened the effect of the weak economy at AT&T Inc., helping the country's biggest telecommunications carrier beat analyst estimates for the first quarter.

National Semiconductor to cut 1,725 jobs

Mar 11, 2009

(AP) -- Faced with a steep decline in sales, chip maker National Semiconductor Corp. said Wednesday it will eliminate more than one-quarter of its work force, or 1,725 jobs.

IAC shares surge despite $28M quarterly loss (Update)

Apr 29, 2009

(AP) -- The recession took a bite out of IAC/InterActiveCorp in the first quarter, as revenue fell 22 percent in the Internet company's media and advertising unit, which includes the Ask.com search engine.

Recommended for you

Ticketfly buying WillCall for on-premise data

19 hours ago

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

Aug 20, 2014

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

Aug 20, 2014

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

Aug 20, 2014

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0