18% drop in profit for EMBARQ

7 May 2009

US-based wireline and broadband operator EMBARQ saw net profit fall 17.9% in the first quarter of 2009, down to USD174 million from USD212 million in the same period a year ago. The company cut its operating expenses for the quarter by USD84 million, down to USD936 million. However, revenues fell by USD110 million to USD1.35 billion for the period ending 31 March 2009. EMBARQ ended the quarter with 5.55 million wireline subscribers, a decline of 144,000. The company added 40,000 net new broadband subscribers, ending the quarter with 1.45 million customers. EMBARQ’s CEO Tom Gerke said, ‘Our primary objectives as we entered 2009 were to maintain the momentum that enabled us to post record cash flow in 2008 and to continue to make progress on our merger with CenturyTel. In both respects, I think the EMBARQ team clearly demonstrated their continued commitment by delivering another successful quarter.’

United States