Qwest near-triples net income despite fall in revenue

2 May 2007

Qwest revealed yesterday that first quarter net income almost tripled year-on-year despite lower revenue. Operating revenue fell 0.9% in the first three months of 2007 to USD3.45 billion, but lower facility costs, depreciation expenses and realignment costs produced a 6.2% drop in operating expenses. Net income stood at USD240 million, up from USD88 million last year. The decline in sales comes after strong 11% growth in internet and video service revenue failed to fully offset a 6.6% slip in sales from voice services. ‘We are off to a solid start for 2007 as we progress towards our long-term goal of sustainable value creation,’ CEO Richard Notebaert told analysts during a conference call.

United States, Qwest Communications International