Earnings: Qwest 1Q Net Income Up 173 Percent

Qwest Communications (NYSE: Q) posted earnings of $240 million for 1Q compared with earnings of $88 million in 1Q06, a 173 percent gain. Citing positive financial trends in general, Richard Notebaert, Qwest’s chairman and CEO, also pointed to subscriber growth and the easing of federal regulations for the improvement in the quarter. The company also reported:

— Operating revenue for the quarter was $3.4 billion, including data and internet services revenue of $1.2 billion, now more than 35 percent of operating revenue. Internet and video revenue increased by 11 percent year over year.
— Revenue grew 1.3 percent year-over-year while absorbing $6 million in non-recurring revenue credits associated with the settlement of a regulatory action.
— Qwest added 260,000 high-speed internet, video and wireless subscribers, resulting in an increase of more than 100,000 in net connections during the quarter. By the end of 1Q, Qwest had a total of 13.6 million domestic access lines, down 6.8 percent from 1Q06. Earnings release | Webcast