Detailed Report of Qwest's 2008 Full-Year Results

Last Tuesday Qwest Communications International Inc. reported its fourth quarter and full-year 2008 results. Here are some highlights from the fourth quarter:

• Before income tax, income increased 17% year-over-year
• Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased by 4%
• Enterprise revenue increased, fueled by 9% year-over-year growth in data and IP
• Video, Data and Internet revenue became 25% of mass market
• Customer base grew 9% year-over-year
• FTTN coverage available to 1.9 million prospective subscribers

Denver-based telecom company, Qwest Communications, revealed financial results for the full-year 2008, including the fourth quarter. During 2008’s fourth quarter, the company reported a net income of $185 million. Revenue was $3.3 billion during the fourth quarter, and the adjusted EBITDA was $1.18 billion. Qwest made solid improvements on critical initiatives, and further improved profitability. The company converted more than 180,000 subscribers from its mobile virtual network operator (MVNO) to its wireless partner Verizon.

"Our improved profitability in the fourth quarter reflects an intense focus by the entire team," stated Qwest Chairman and CEO, Edward A. Mueller. "Under challenging market conditions, we delivered strong performance across each of our business units. The execution that we demonstrated over the past couple of quarters will provide a solid foundation in the current difficult economic climate."

Qwest reported a net income of $681 for the full-year. The company reported operating revenue of $13.5 billion for 2008, and the annual adjusted free cash flow was $1.44 billion.

For the full-year 2009, the company expects the adjusted free cash flow will total upwards of $1.4 billion. Qwest anticipates that the adjusted EBITDA will be between $4.2 and $4.4 billion. Lastly, Qwest predicts that capital investments will be approximately $1.8 billion.