DENVER — Qwest Communications International Inc. on Tuesday reported a drop in year-over-year net income for the first quarter despite record revenue and earnings before interest, taxes, depreciation and amortization.
The company, which has telecommunications services in Utah and 13 other states, said net income was $218 million, or 13 cents per share, for the quarter. That compares with net income of $239 million, or 15 cents per share, for the same period a year ago.
The earnings of 13 cents per share matched the consensus estimate of Wall Street analysts. The company said it has met or exceeded the consensus estimates for 16 consecutive quarters.
Total operating revenue was $5 billion in the quarter, up from $4.5 billion in the prior-year period, primarily due to Internet and data services growth of 44 percent. Digital subscriber line growth increased more than 125 percent annually to more than 306,000 customers.
Commercial services revenues increased 26.5 percent to $2.7 billion as Qwest continued to focus on the broadband Internet and data needs of enterprise and wholesale customers. The company's small-business and consumer units recorded services revenue growth of 6.3 percent, or 2.7 percent including out-of-region long-distance results.
Wireless services revenue grew 45 percent in the quarter to more than $152 million.
"We believe the industry will continue to provide solid growth opportunities in 2001, especially for our broadband Internet and data services," said Joseph P. Nacchio, Qwest's chairman and chief executive officer. "Qwest is well positioned to take advantage of that growth at the local, national and global level."
Qwest also reconfirmed its financial targets for 2001 of $21.3 billion to $21.7 billion in revenue and $8.5 to $8.7 billion in earnings before interest, taxes, depreciation and amortization. The company said it expects capital spending to total $9.2 billion during the year, $300 million less than previous estimates.
The company's stock price was at $37.90 early Tuesday, up 78 cents from Monday's close. In the past year, the price has ranged from $30 to $66.87.