Qwest First Quarter Results

Wednesday, Qwest Communications announced first-quarter results for 2009. During the 1Q, net income increased by 37%, growing from $150 million to $206 million compared to 1Q 2008. Earnings per share increased by 50%, jumping to 12 cents. Qwest’s 2009 first quarter results reflect a heavy contribution from each business sector. First quarter earnings per share were influenced by a growth in OPEB expense and non-cash pension, which was balanced by a reduced tax rate and lower net interest costs. Qwest’s 2009 1Q results include a reduced charge for restructuring, severance, and realignment. Charges dropped from 2 cents per share to 1 cent per share since 2008.

First quarter revenue for Qwest was reportedly $3.2 billion. The adjusted EBITDA in 1Q 2009 includes about $50 million in non-cash pension and OPEB expenses. The adjusted EBITA margin increased from 33.6% to 36.1% since 1Q 2008. Adjusted free cash flow for 1Q 2009 was $339 million, compared to $56 million for 1Q 2008.

During 1Q 2009, Qwest made strong progress on its profit goals, with all sectors announcing a year-over-year and continuous improvement in sector margin percentages. Qwest experienced a strong demand for Internet and data services in all sectors. Once again, 1Q revenue growth in Business Markets is predicted to have surpassed the industry.

“Disciplined execution and focus on cost controls have produced a strong start to the year given the current economic climate,” said Edward A. Mueller, Qwest Chairman and CEO. “We are seeing tangible results from our focus on our key strategies to perfect the customer experience, including demand for our leading data services and strong results from our partnerships. We continue to tightly manage spending and investments to preserve financial strength and mitigate near-term economic pressures.”