Qwest could be within striking distance of reversing a long string of quarterly sales declines, chief executive Ed Mueller said Wednesday.
Mueller said he was encouraged by a first-quarter earnings report showing stronger sales for high-speed Internet and video services even as landline phone customers continued to drop.
Broadband subscribers rose from 2.7 million to 2.9 million over the past year at the same time residential phone-line customers fell 12 percent, from 6.5 million to 5.8 million.
“We are a broadband company,” Mueller said. “I’m much more optimistic than maybe people might think I am” about reversing stagnant revenues.
Qwest reported its ninth consecutive quarter of sales declines with first-quarter operating revenue of $3.2 billion compared with $3.4 billion in the same period last year.
Net income rose 37 percent to $206 million from $150 million in the first quarter of 2008, largely from cutting expenses in a series of layoffs.
Qwest has cut its workforce from about 36,000 to 33,000 over the past year. It has about 8,400 workers in Colorado.
“We believe Qwest’s aggressive approach to expense management is paying off, particularly as it faces mounting (economic) pressures across all its business,” JP Morgan analyst Mike McCormack said in a report.
However, McCormack noted that growth rates slowed in Qwest’s business-markets division compared with last year.
Qwest officials Wednesday continued their policy of not commenting on widespread reports that the company is trying to sell its nationwide fiber-optic communications network, which could be valued at $2 billion to $3 billion.
Qwest shares rose 11 cents Wednesday, or 3.1 percent, to $3.68. The stock has gained gained 1.1 percent this year.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
