Feeds

Qwest posts flat revs

Shame about MCI, though

  • alert
  • submit to reddit

Boost IT visibility and business value

Qwest - the US telco that lost out in the bidding war to acquire MCI - reported positive net income for the first three months of the year boosted by the sale of its wireless business in Q1.

Operating revenues were down one per cent from $3.48bn in Q1 2004 to $3.45bn in Q1 2005. Over the same period Qwest turned a net loss of $310m into a net income of $57m.

Much of this was down to the sale of wireless assets to Verizon Wireless for $418m in cash during Q1 05. A reduction in headcount also contributed to the company's improvement, the US telco said in a statement.

"Our ability to stabilize revenues, as well as our continued diligence on cost containment and optimization, has resulted in meaningful margin expansion," said Qwest vice chairman Oren Shaffer. "We continue to improve our competitive position, performance and financial flexibility."

Publishing its Q1 numbers today Qwest also announced it had added 85,000 DSL lines in the first quarter exceeding - an increase of 51 per cent over the last year.

Bowing out of the race yesterday to acquire MCI after being beaten by Verizon, Qwest said: "It is no longer in the best interests of shareowners, customers and employees to continue in a process that seems to be permanently skewed against Qwest. We pursued MCI with tenacity and discipline and feel strongly that our bid would have brought far more value to MCI shareholders.

"Unfortunately, the latest in a string of decisions reconfirms what we have believed all along: that MCI never intended to negotiate in good faith with Qwest nor maximize shareowner value." ®

Related stories

Fickle MCI likes the look of revised Verizon offer
Verizon knocks out Qwest with revised offer
MCI dumps Verizon, cuddles up to Qwest
Qwest makes final offer for MCI
MCI wants $30 a share
Verizon buys slice of MCI
MCI rejects Qwest, cuddles up to Verizon
Crunch time for MCI/Verizon/Qwest lurve triangle

The Essential Guide to IT Transformation

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.