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QWEST COMMUNICATIONS INTERNATIONAL INC.
QUARTERLY SEGMENT INCOME
(UNAUDITED)
| 2009 | 2008 | 2007 | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
| (Dollars in millions, subscribers and access lines in thousands) | |||||||||||||||||||||||||||||
Total segment revenue | $ | 3,093 | $ | 3,215 | $ | 3,286 | $ | 3,291 | $ | 3,318 | $ | 3,338 | $ | 3,338 | $ | 3,364 | $ | 3,360 | ||||||||||||
Total segment expenses | 1,498 | 1,598 | 1,782 | 1,713 | 1,738 | 1,767 | 1,750 | 1,740 | 1,749 | |||||||||||||||||||||
Total segment income | $ | 1,595 | $ | 1,617 | $ | 1,504 | $ | 1,578 | $ | 1,580 | $ | 1,571 | $ | 1,588 | $ | 1,624 | $ | 1,611 | ||||||||||||
Total segment margin percentage : | 52 | % | 50 | % | 46 | % | 48 | % | 48 | % | 47 | % | 48 | % | 48 | % | 48 | % | ||||||||||||
Total access lines | 11,222 | 11,565 | 11,869 | 12,189 | 12,497 | 12,789 | 13,032 | 13,272 | 13,551 | |||||||||||||||||||||
Business markets: | ||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Data and Internet services | $ | 660 | $ | 696 | $ | 679 | $ | 644 | $ | 618 | $ | 637 | $ | 602 | $ | 586 | $ | 578 | ||||||||||||
Voice services | 357 | 354 | 365 | 369 | 374 | 368 | 374 | 382 | 385 | |||||||||||||||||||||
Total revenue | 1,017 | 1,050 | 1,044 | 1,013 | 992 | 1,005 | 976 | 968 | 963 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Direct segment expenses | 292 | 327 | 339 | 292 | 282 | 307 | 261 | 267 | 246 | |||||||||||||||||||||
Assigned facility, net work and other expenses | 329 | 329 | 336 | 340 | 335 | 336 | 324 | 317 | 322 | |||||||||||||||||||||
Total expenses | 621 | 656 | 675 | 632 | 617 | 643 | 585 | 584 | 568 | |||||||||||||||||||||
Income | $ | 396 | $ | 394 | $ | 369 | $ | 381 | $ | 375 | $ | 362 | $ | 391 | $ | 384 | $ | 395 | ||||||||||||
Margin percentage | 39 | % | 38 | % | 35 | % | 38 | % | 38 | % | 36 | % | 40 | % | 40 | % | 41 | % | ||||||||||||
Access lines | 2,582 | 2,636 | 2,680 | 2,713 | 2,748 | 2,791 | 2,807 | 2,822 | 2,845 | |||||||||||||||||||||
Mass markets: | ||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Data and Internet services | $ | 350 | $ | 344 | $ | 340 | $ | 340 | $ | 333 | $ | 315 | $ | 305 | $ | 290 | $ | 276 | ||||||||||||
Voice services | 919 | 943 | 970 | 989 | 1,022 | 1,040 | 1,058 | 1,076 | 1,084 | |||||||||||||||||||||
Wireless services(1) | 55 | 89 | 116 | 125 | 129 | 132 | 137 | 133 | 133 | |||||||||||||||||||||
Total revenue | 1,324 | 1,376 | 1,426 | 1,454 | 1,484 | 1,487 | 1,500 | 1,499 | 1,493 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Direct segment expenses | 288 | 294 | 323 | 328 | 354 | 375 | 368 | 355 | 356 | |||||||||||||||||||||
Assigned facility, network and other expenses | 312 | 346 | 428 | 397 | 409 | 415 | 419 | 414 | 410 | |||||||||||||||||||||
Total expenses | 600 | 640 | 751 | 725 | 763 | 790 | 787 | 769 | 766 | |||||||||||||||||||||
Income | $ | 724 | $ | 736 | $ | 675 | $ | 729 | $ | 721 | $ | 697 | $ | 713 | $ | 730 | $ | 727 | ||||||||||||
Margin percentage | 55 | % | 53 | % | 47 | % | 50 | % | 49 | % | 47 | % | 48 | % | 49 | % | 49 | % | ||||||||||||
Broadband subscribers | 2,889 | 2,847 | 2,793 | 2,732 | 2,701 | 2,611 | 2,516 | 2,405 | 2,305 | |||||||||||||||||||||
Video subscribers | 832 | 798 | 761 | 722 | 690 | 649 | 605 | 554 | 491 | |||||||||||||||||||||
Wireless subscribers | 747 | 717 | 772 | 811 | 816 | 824 | 819 | 807 | 812 | |||||||||||||||||||||
Access lines | 7,537 | 7,796 | 8,022 | 8,266 | 8,502 | 8,707 | 8,887 | 9,065 | 9,273 | |||||||||||||||||||||
Wholesale markets(2): | ||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Data and Internet services | $ | 353 | $ | 357 | $ | 354 | $ | 349 | $ | 351 | $ | 346 | $ | 344 | $ | 345 | $ | 345 | ||||||||||||
Voice services | 399 | 432 | 462 | 475 | 491 | 500 | 518 | 552 | 559 | |||||||||||||||||||||
Total revenue | 752 | 789 | 816 | 824 | 842 | 846 | 862 | 897 | 904 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Direct segment expenses | 49 | 43 | 45 | 46 | 45 | 19 | 48 | 48 | 53 | |||||||||||||||||||||
Assigned facility, network and other expenses | 228 | 259 | 311 | 310 | 313 | 315 | 330 | 339 | 362 | |||||||||||||||||||||
Total expenses | 277 | 302 | 356 | 356 | 358 | 334 | 378 | 387 | 415 | |||||||||||||||||||||
Income | $ | 475 | $ | 487 | $ | 460 | $ | 468 | $ | 484 | $ | 512 | $ | 484 | $ | 510 | $ | 489 | ||||||||||||
Margin percentage | 63 | % | 62 | % | 56 | % | 57 | % | 57 | % | 61 | % | 56 | % | 57 | % | 54 | % | ||||||||||||
Access lines | 1,103 | 1,133 | 1,167 | 1,210 | 1,247 | 1,291 | 1,338 | 1,385 | 1,433 | |||||||||||||||||||||
- (1)
- The decrease in wireless services revenue in 2009 and 2008 compared to 2007 is primarily due to fewer wireless subscribers as we transition to selling Verizon Wireless services. We record the revenue that we earn from our Verizon Wireless arrangement in voice services revenue. Only revenue associated with our pre-existing arrangement is recorded in wireless services revenue.
- (2)
- Long-distance services revenue, primarily in our wholesale markets segment, of $88 million and $93 million was reclassified from data and Internet services revenue to voice services revenue for the years ended December 31, 2008 and 2007, respectively.
QWEST COMMUNICATIONS INTERNATIONAL INC. QUARTERLY SEGMENT INCOME (UNAUDITED)