news


Qwest: High Taxes Pushed Our Profit Down

Alert the IRS: Qwest Communications International Inc. (Q) didn’t hit its second-quarter earnings numbers because taxes are too high.

At least that’s what the Denver-based carrier said Wednesday when it reported a 24-percent drop in second-quarter net income, which totaled $188 million. The weird thing is, that’s $31 million more than Qwest made in the first quarter and a penny more per share – 11 cents – than analysts expected. Boo hoo?

Yes, the loss is big compared to the same period a year ago, but CFO John Richardson predicted during the first-quarter earnings call that Qwest’s 2008 net income won’t even come close to 2007’s numbers. In other words, no one should be surprised. And frankly, a jump from $157 in the first quarter seems like a positive. But maybe we’re missing something. Maybe this crying about taxes is big business’s way of trying to get the government to do it a favor (especially since Qwest can’t charge competitors higher rates for access to its network). Heck, if that happened, the rest of us would have to storm the IRS for a tax break too. The big boys shouldn’t be the only ones with all the luck.

Sources

Denver Post: Qwest cites competition in 24 percent income decline

BusinessWeek: Qwest earnings down 24 percent, beat Wall St.

Reuters: Qwest quarterly profit falls 24 percent

Related Articles

Qwest, on Profit Drop, Focuses on Wireless, FTTN

Qwest Earnings Up 89 Percent


Leave a comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Polls

In our Channel Influencer Awards digital issue, we highlighted eight technologies ready to "take off" in the channel this year. Which two will take off the most?

View Results

Loading ... Loading ...
The ID is: 77209