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Qwest cites competition in 24 percent income decline
Byy Steve Raabe
Denver Post
Wednesday, August 6, 2008
Article Last Updated: 08/06/2008 09:10:02 AM MDT

Denver-based Qwest reported a 24 percent drop in net income for the second quarter as the company lost phone customers to cable and wireless providers.

"Under more challenging conditions in some of our markets, operating results were mixed," said Qwest CEO Ed Mueller.

Net income fell to $188 million, or 11 cents a share, compared to $246 million, or 13 cents a share, in the same period last year.  Sales declined 22.3 percent to $3.38 billion.

Qwest said it gained more broadband Internet subscribers, 31,000 in the second quarter, although it represented a smaller increase from 90,000 new broadband customers in the first quarter.

The company lowered its forecast for full-year revenue and profits.  Total revenue is expected to decline as much as 2.5 percent, while earnings before taxes, interest and depreciation will fall 1 to 2 percent from the $4.6 billion reported in 2007.

Steve Raabe: 303-954-1948 or