Qwest this week posted a third quarter loss of $144 million on revenue of $3.5 billion.
The loss narrowed from a year ago deficit of $569 million. Revenue was up slightly from $3.45 billion in the third quarter of 2004.
Qwest says the quarterly revenue represents the sixth consecutive quarter of stable revenues, as well as continued year-over-year growth in mass markets and business revenues. Business revenue benefited from the recognition of revenue on a large government contract of approximately $52 million in the quarter, the carrier said.
Revenue trends improved as a result of strong sales in high-speed Internet, advanced data products, long-distance, and bundles, the carrier said.
Qwest added 150,000 high-speed Internet lines in the third quarter, bringing total lines in service to 1.3 million – a 12.6% increase sequentially and a 40% increase over the year-ago quarter. The company’s mass markets data and Internet revenues increased 8% sequentially and 38% year-over-year.
Long-distance penetration of total retail lines increased to 36% in the third quarter, compared to 32% a year ago. Qwest increased total long-distance lines by 74,000 in the quarter. The company ended the quarter with more than 4.7 million long-distance lines, a 2% increase from the second quarter and a 7% increase over a year ago. Mass markets long-distance revenue grew 4% sequentially and 13% compared to a year ago.
The company’s bundle penetration increased to 50% in the quarter, compared to 43% a year ago.
Qwest’s wireless subscriber base grew by more than 4,000 in the quarter, bringing total wireless subscribers to 748,000. Qwest says its data and enhanced features are driving higher wireless ARPU, which increased 9% to $51 from $47 a year ago.
Total access lines were down 154,000 in the third quarter, an improvement from a loss of 231,000 lines in the second quarter and 159,000 lines in the third quarter of last year. Small-business access lines increased for the fourth consecutive quarter. Business retail access lines declined 14,000 in the third quarter, an improvement from year-ago declines and less than half of the loss last quarter.
Resold access lines declined 52,000 sequentially.
The company reduced total debt less cash and short-term investments by more than $840 million, to $14.3 billion, compared to $15.2 billion in the third quarter of 2004.
