Qwest Communications Profit Falls 25% as Subscribers Cut Fixed Phone Lines
Qwest Communications International Inc., the phone company being acquired by CenturyLink Inc., reported second-quarter profit declined 25 percent as its lost home-phone subscribers.
Net income fell to $158 million, or 9 cents a share, from $212 million, or 12 cents, a year earlier, the Denver-based company said today in a statement. Earnings excluding some items were 10 cents a share. Analysts had estimated 9 cents, the average projection in a Bloomberg survey.
Qwest is promoting its high-speed Internet service to offset losses of home-phone customers, who are moving to mobile plans and digital voice offered by cable companies. CenturyLink, which agreed to buy Qwest in April for about $10 billion, is using a similar strategy as it preserves growth through Web service and acquisitions.
Qwest dropped 1 cent to $5.65 yesterday in New York Stock Exchange composite trading. The stock has gained 34 cents this year. Monroe, Louisiana-based CenturyLink will report earnings later today.
Sales declined 5.2 percent to $2.93 billion, Qwest said.