Qwest Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting significant changes compared to the previous fiscal period. Operating revenue for Q3 2024 was $1.363 billion, a decrease of 6% from $1.450 billion in Q3 2023. For the nine months ended September 30, 2024, total operating revenue was $4.144 billion, down 7% from $4.458 billion in the same period last year. The decline in revenue was attributed to decreases across several product lines, including Other Broadband, Voice and Other, and Fiber Broadband, primarily due to a reduction in customer base and fewer subscribers migrating to higher-speed services.
Despite the revenue decline, Qwest's operating income for Q3 2024 increased to $498 million from $484 million in Q3 2023, and net income rose to $365 million from $341 million in the same quarter of the previous year. For the nine months ended September 30, 2024, net income was $1.096 billion, compared to $1.193 billion in the same period of 2023. The increase in operating income for Q3 was supported by a decrease in operating expenses, which fell to $866 million from $2.6 million in Q3 2023, largely due to lower employee-related costs.
The company’s total assets as of September 30, 2024, increased to $16.988 billion from $16.337 billion at the end of 2023, while long-term debt decreased to $1.689 billion from $2.156 billion. Retained earnings saw a significant rise to $1.802 billion from $706 million at the end of 2023, reflecting improved profitability.
Strategically, Qwest has been focusing on enhancing its network operating efficiencies and expanding its fiber network, including the Quantum Fiber buildout plan. The company also undertook a workforce reduction of approximately 3% in April 2024, incurring severance costs of about $25 million as part of a cost reduction initiative.
In terms of cash flow, net cash provided by operating activities for the nine months ended September 30, 2024, was $1.646 billion, down from $1.822 billion in the same period of 2023. Net cash used in investing activities decreased to $(1.346) billion from $(1.820) billion, primarily due to reduced advances to affiliates. However, net cash used in financing activities increased to $(288) million from $(2) million, reflecting repayments of a term loan and advances from affiliates.
Overall, Qwest Corporation's financial performance in Q3 2024 and the nine months ended September 30, 2024, indicates a mixed picture of declining revenues but improved profitability and strategic focus on operational efficiencies and network expansion.
About QWEST CORP
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