Qwest disappointing Q2 results

7 Aug 2008

Denver-based Qwest Communications posted net income of USD188 million for the second quarter to 30 June, down from USD246 million a year earlier. Revenue dropped 2% to USD3.38 billion.

Qwest saw a year-on-year 8.2% decline in access lines, above the expected drop in subscribers due to the termination of accounts by holidaying college students, and ended the quarter with 12.2 million subscribers equating to a loss in market share. Broadband internet subscribers increased 14% taking its total to 2.73 million by 30 June 2008 but this was below expectations. Revenue from data, video and internet services climbed 9%, while monthly average revenue per user (ARPU) increased 6%.

As it plans to stem the tide of customers migrating to rival cable operators, Qwest is investing in upgrading its network with faster fibre-optic lines to offer higher internet connection speeds. In the second quarter it also switched wireless partners to Verizon Wireless from Sprint Nextel Corp. Qwest now uses DirecTV and Verizon Wireless to complete its bundled offering of phone, internet, TV and mobile services.

United States, Qwest Communications International