Notebaert: Qwest hopes to post profit after restructuring
By Sandy Shore, The Associated Press
Thursday, January 11, 2006
The head of Qwest Communications reiterated Wednesday his
belief that the Denver-based phone company may turn a profit
this year after restructuring debt and improving its balance
Qwest revenue has been flat to slightly higher in the last
four to five quarters as sales have risen, chief executive
Dick Notebaert told analysts at the Citigroup Global
Entertainment, Media and Telecommunications Conference in
"We see the opportunity this year to cross over into
profitability, which for us would be, we think, another
milestone of where we are going," he said.
Qwest last posted a quarterly profit in January-March 2005,
when results were buoyed by the sale of wireless assets to
Verizon Communications. The last time Qwest posted an
annual profit was in 2003, which was largely attributed to
the sale of its phone-directory business.
Notebaert first mentioned the opportunity for a profit in
November when he discussed third-quarter results and a $400
million settlement of a key shareholder lawsuit stemming
from an accounting scandal that forced the company to
restate billions of dollars in revenue.
Analysts have said Qwest faces challenges because it lacks
an independent wireless division, customers for traditional
phone service are diminishing and competition for wireless
and Internet customers is growing.