Telecommunications provider Qwest Communications said Tuesday its first-quarter profit nearly tripled despite lower revenue as it cut expenses while demand grew for Internet and data services.
Qwest Communications International Inc. said net income of $240 million, or 12 cents a share, compared with $88 million, or 5 cents per share, in the first quarter of 2006.
Revenue in the most recent quarter fell 1 percent to $3.45 billion from the year-earlier total of $3.48 billion.
Analysts polled by Thomson Financial forecast a profit of 9 cents per share on revenue of $3.49 billion.
"We are off to a solid start for 2007 as we progress towards our long-term goal of sustainable value creation," Chief Executive Officer Richard Notebaert told analysts during a conference call.
In a research note, Bank of America analyst David Barden called the results a "barbell quarter," noting lower revenue and access line losses were offset by reduced expenses which led to stronger earnings per share.
In the first quarter, combined data, Internet and video revenue increased 11 percent over the year-ago quarter. Qwest said the segment represented more than 35 percent of its operating revenue.
Qwest also said it enjoyed continued strength in mass markets, but that revenue growth from its wholesale divisions remained flat. Operating expenses declined 6 percent.
Access lines, which represent traditional phone service, declined 6.8 percent to 13.6 million, Notebaert said.
Qwest shares rose 18 cents, or 2 percent, to $9.06 in early trading on the New York Stock Exchange, near the high end of a 52-week range of $6.12 to $9.22.
Denver-based Qwest is the primary telephone service provider in 14 Midwestern and Western states and operates a fiber-optic network for broadband services.
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On the Net: http://www.qwest.com