Qwest Q2 Losses Less Than Expected
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Qwest Communications International Inc. today disclosed its second quarter results, posting revenues of $393.7 million, and a net loss of $15.6 million or $0.06 per share.
Qwest said the earnings amounted to a gain of $165 million or a 72% increase over year-ago results, while net losses were lower than predicted by Wall Street. First Call Corp. forecasted Qwest's second quarter losses would equal $0.10 per share. Net loss results were $5.6 million or $0.03 per share for the same period last year.
The company said its communications services earnings soared from $24.0 million to $239.8 million over the same quarter 1997, a ten-fold increase. Earnings before interest, taxes, depreciation and amortization (EBITDA) in second quarter 1998 amounted to $24.1 million, a $27.1 million gain over 1997. One-time, merger-related charges totaled $880.5 million, as previously announced.
Quarterly financials also include one-month operations results from second quarter acquisition LCI International. Qwest said synergies formed between Qwest and LCI are predicted to record more than $1.2 billion in cost savings and contribution from incremental revenue over a four-year period, with capital savings estimated to be more than $600 million.
"Qwest is pleased with its strong second quarter results. The demand for broadband capacity on the Qwest network continues to increase, and we have capitalized upon this growing demand. The company continues to expand organically and through strategic acquisitions," said Robert S. Woodruff, executive vice president and CFO of Qwest.
"The acquisition of LCI International was completed in just 88 days, and the integration of the two companies is progressing very well, with operating and capital synergies expected to be better than originally announced."