Citing continued competitive pressures in local and long-distance voice services, Qwest Communications reported Q4 revenue of $3.7 billion, an 11.2% decrease from the same period last year, and a 3.1% decrease sequentially. Revenue for full-year 2002 was $15.5 billion, a 7.5% decline from 2001 revenue of $16.7 billion. For Q4, operating income was $346 million compared with a $759 million operating loss in the fourth quarter of 2001, and an $11 million operating loss in the third quarter of 2002. Some other highlights:
During Q4, Qwest reduced its total debt, net of cash and cash equivalents, from $25.0 billion to $20.4 billion through the sale of its directories business.
In Q4, Qwest lost approximately 162,000 consumer access lines, 9,000 fewer lines than in the third quarter. Qwest said it expects access lines to continue to face pressure from wireless and broadband substitution, competition, and a declining regional economy. Trends seen in the second half of 2002 are expected to continue into 2003 with overall net access line declines slightly better than the declines experienced in 2002.
Demand for data and IP services is expected to remain relatively flat in 2003. Qwest expects modest growth in demand of its core data and IP telecom offerings, such as ATM and frame relay, to be offset by declines in low-margin CPE and professional services sales.
DSL subscriber growth is expected to accelerate throughout the year as the customer service improves and coverage is expanded. Net additions for 2003 are expected to exceed 2002 gains.
For 2003, the rate of revenue decline is expected to be comparable to or slightly better than 2002 levels. Capital expenditures are expected to be in the range of 15 to 20% of revenue.
At the end of Q4, Qwest had 535,000 DSL subscribers, up 56% over Q4 2001. There were 428 DSL equipped central offices, compared to 348 at the end of Q4 2001.
At the end of Q4, Qwest had 50,788 employees, down 17% from a year earlier.
http://www.qwest.com
