Qwest Communications 3Q earnings fall 6 pct

Oct 28, 2009

(AP) -- Qwest Communications International Inc. reported a 6 percent drop in third-quarter profit Wednesday as customers continue to give up traditional landline telephones.

Qwest has been struggling to find ways to grow sales as its industry shrinks. It offers local phone service in 14 Western states and customers have been siphoned off by competition from cable and cell phone providers.

This summer it fell behind CenturyLink into fourth place among U.S. phone companies by number of lines in service. AT&T Inc. and Verizon Communications Inc. are the two largest.

Qwest ended the third quarter with roughly 7 million lines, down 12 percent from a year ago. It pointed to progress expanding its broadband service. It added 28,000 subscribers, bringing the total up 6 percent to nearly 3 million.

The company, based in Denver, said it earned $136 million, or 8 cents per share, in the three months ended Sept. 30, down from $145 million, or 8 cents per share, a year ago.

Excluding a penny-per-share charge for severance costs and other unusual expenses, the company would have earned 9 cents. On that basis, earnings edged past expectations. Analysts polled by Thomson Reuters, who typically exclude special items, expected earnings of 7 cents per share.

The company's stock rose a penny to $3.46 in morning trading.

Revenue fell 10 percent to $3.05 billion from $3.38 billion a year ago, shy of the average forecast of $3.07 billion.

The company also said it expects full-year earnings before interest, taxes, depreciation and amortization to hit the top end of its previous forecast, which called for a range between $4.25 billion and $4.4 billion.

It trimmed its full-year forecast for capital spending to $1.6 billion from $1.7 billion.

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 This material may not be published, broadcast, rewritten or redistributed.

Explore further: PayPal to separate from eBay in 2015

add to favorites email to friend print save as pdf

Related Stories

Qwest 1Q earnings rise 37 pct after cost cuts

Apr 29, 2009

(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.

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.

Qwest 2Q profit up 18 pct on one-time tax savings

Jul 29, 2009

(AP) -- Qwest Communications International Inc.'s second-quarter earnings rose 18 percent because of one-time tax savings, even as revenue continued to slide as customers abandon landline telephones, the phone company said ...

Texas Instruments 2Q profit falls 56 percent

Jul 20, 2009

(AP) -- Chip maker Texas Instruments says its second-quarter earnings fell 56 percent from a year ago, clipped by a weak economy that the company expects will "take some time" to strengthen.

Economy and iPhone subsidies trim AT&T's 2Q profit

Jul 23, 2009

(AP) -- AT&T Inc.'s earnings fell 15 percent in the second quarter as it subsidized a record-setting launch of the newest iPhone. The weak economy also continued to sap its landline business.

Recommended for you

Microsoft to tap $2-trillion Indian cloud market

14 minutes ago

Microsoft announced plans Tuesday to offer its commercial cloud services from Indian data centres as it seeks to tap what it calls a $2-trillion market in the country where Internet use is growing rapidly.

Canada demands Google, Netflix data, sets deadline

5 hours ago

Canada's broadcast regulator on Monday gave American companies Google and Netflix a three-day deadline to turn over subscriber data or have their testimony expunged from a major public hearing, media reported.

User comments : 0