Monday, October 31, 2005

Qwest Adds 150,000 DSL Subscribers in Q3

Qwest Communications added 150,000 DSL subscribers in Q3 2005, 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. Currently, DSL is available to 75% of Qwest households and 96% of qualified households are able to purchase broadband speeds of 1.5 Mbps or greater.

Financially, Qwest reported third quarter revenue of $3.5 billion, compared to $3.47 billion in the second quarter and $3.45 billion in the third quarter a year ago. This represents the sixth consecutive quarter of stable revenues, as well as continued year-over-year growth in mass markets and business revenues. Some other highlights:

  • Consumer bundle penetration expanded to 50%

  • Long-Distance penetration is at 36%

  • Operating expenses totaled $3.3 billion, a decline of 9 percent or $326 million compared to the third quarter of 2004.

  • Q3 CAPEX totaled $445 million, compared to $418 million in the third quarter of 2004

  • Qwest's wireless subscriber base grew by more than 4,000 in the quarter, bringing total wireless subscribers to 748,000. Revenues remained flat because of promotions and incentives.
    APRU increased 9 percent 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 (excluding the 21,000 UUNet disconnects) 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. Qwest continued its leadership role in working with wholesale customers by signing commercially negotiated agreements. Approximately 96 percent of the company's UNE-P revenue now comes from customers on commercial Qwest Platform Plus (QPP) contracts.

  • Qwest's DIRECTV customer net additions continued to grow in the third quarter; subscribers currently total more than 95,000. Qwest and DIRECTV's previously announced strategic relationship allows Qwest to offer DIRECTV digital satellite television services to residential customers across the western United States.

See also