Qwest reported an 82 percent drop in net profit during the first quarter as the Denver-based company took large one-time charges related to taxes, debt retirement and severance.
The telecommunications company’s revenue declined 6.5 percent to roughly $3 billion as total landlines fell another 10.5 percent to 9.7 million. Qwest continues to lose phone customers to wireless substitution and digital voice services offered by cable companies.
Qwest, which agreed last month to a $22 billion buyout from Monroe, La.-based CenturyTel, posted first-quarter net income of $38 million, or 2 cents per share. The company took non-cash charges totaling 8 cents a share during the quarter.
Operating expenses dropped 9 percent to about $2.4 billion. Net debt dropped to $11.7 billion from $12.8 billion a year ago.
Qwest’s residential and small-business broadband subscribers increased 5.3 percent to 2.9 million.
Qwest offers local-phone service in Colorado and 13 other states and operates a nationwide fiber-optic communications network. The merger with CenturyTel, which operates as CenturyLink, requires shareholder and regulatory approval and is expected to be completed by April 2011. The combined company’s headquarters will be based in Monroe.
“Our proposed merger with CenturyLink will combine two well-run companies to create a stronger competitor,” Qwest chief executive Ed Mueller said in a prepared statement.
Andy Vuong: 303-954-1209, avuong@denverpost.com or
