Qwest Communications reported Q3 revenue of $3.6 billion, a 5.4% decrease from Q3 2002, which the company attributed to competitive pressures in local voice and wireless services. These declines were partially offset by growth in data and long-distance services within the local service territory. Net income was $1.8 billion, which includes a gain of $2.5 billion following the completion of the second phase of the QwestDex sale.
"While the industry environment is still challenging, we are seeing signs of stabilization in our business," said Oren G. Shaffer, Qwest's vice chairman and CFO. "We continue to focus on growing profitably and pursuing opportunities to improve our financial strength."
Some highlights from Q3:
- Qwest reduced its total debt by $1.2 billion during Q3
- added long-distance service to 572,000 access lines in its local service territory.
- began using its own network to carry long-distance traffic within its local service territory.
- added 41,000 DSL subscribers, giving it a total of 577,000 in-region DSL subscribers
- signed strategic marketing agreements with EchoStar and DIRECTV to offer bundled video services
- signed a wholesale agreement with Sprint PCS for wireless services
Qwest also confirmed that it will begin offering VoIP services to a select group of consumers in Minnesota starting in December 2003. This initiative marks the company's first step in a phased deployment of VoIP services that will continue into 2004.
http://www.qwest.com
