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Qwest posts 18% jump in 2nd-quarter earnings

By Andy Vuong
The Denver Post

Posted: 07/29/2009 07:45:28 AM MDT

Updated: 07/29/2009 03:00:37 PM MDT


Qwest posted an 18 percent increase in earnings during the second quarter, spurred by cost cuts and growth in large business customers and residential high-speed Internet subscribers.

The Denver-based telecommunications company said today that it had net income of $212 million, or 12 cents a share, on revenue of $3.1 billion for the quarter.

The company posted earnings of $180 million on revenue of $3.4 billion during the same quarter a year ago.

Mike McCormack, a telecommunications analyst with JP Morgan, expected the company to post earnings of 9 cents a share on revenue of $3.1 billion.

Qwest has focused on growing broadband subscribers amid continuing declines in home-phone customers.

Total landlines dropped 11 percent to 10.9 million during the quarter, from 12.2 million a year ago.

At the same time, the company's high-speed Internet subscribers increased 7 percent, to 2.9 million from 2.7 million.

The company's operating expenses dropped roughly 8 percent to $2.6 billion from $2.8 billion.

Over the past year, Qwest shed more than 3,600 jobs, with total employees dropping to 31,509 from 35,111.

Andy Vuong: 303-954-1209 or avuong@denverpost.com