Qwest's Moderate Losses Continue

The second quarter was a middling affair for Qwest Communications International Inc., with moderating line loss offset by a decline in growth for its broadband and video segments, even as total revenue once again fell.

The recession certainly didn’t help Qwest’s access line business, but there were signs its impact was easing. Qwest lost another 196,000 primary residential lines in the second quarter. That equaled the 196,000 lines lost in the first quarter but was an improvement from the 200,000 lines lost in the prior second quarter.

Qwest also lost 27,000 additional lines, down from 32,000 lines lost in the first quarter and 28,000 lost in the second quarter a year ago. At the end of June, Qwest held onto just shy of 5.6 million primary and 484,000 secondary lines.

In video, while the numbers were still positive, the net growth did slow. Qwest added 21,000 new DirecTV customers, down from 34,000 added in the first quarter and 32,000 added in the second quarter 2008. That brought its digital TV base to 853,000 subscribers.

Broadband data growth also showed signs of slowing despite Qwest’s recent rollout of higher-speed digital subscriber line services. The telco gaining 34,000 new subscribers to total 2.9 million. That gain is down compared to the 42,000 subscribers added in the first quarter but slightly ahead of the 31,000 added in the second quarter last year.

Elsewhere, Qwest is still rebuilding its wireless subscriber base, now that it has sold off its own network and has partnered with Verizon Wireless. That appears to be working, as Qwest gained wireless for the first time in about two years, adding 16,000 customers compared to 30,000 lost in the first quarter and 5,000 lost in the prior second quarter. At the end of the quarter Qwest claimed 763,000 wireless subscribers.

Despite the DSL and video gains, the voice losses combined with setbacks in business and wholesale segments put a drag on Qwest’s total revenue intake, which fell to $3.09 billion form $3.17 billion in the first quarter and $3.38 billion in the second quarter 2008. But net income did improve to $212 compared to $206 million in the first quarter and $188 million in the second quarter a year ago.

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