more QWST news: Qwest comfortable with Wall Street expectations
Wednesday February 24, 11:46 am Eastern Time
Qwest comfortable with Wall Street expectations
NEW YORK, Feb 24 (Reuters) - Qwest Communications International Inc.
(Nasdaq:QWST - news), the No. 4 U.S. long distance company, on Wednesday said it will
expand its high-speed communications network into 19 local markets and reiterated its plan
to meet Wall Street's financial expectations for 1999 and 2000.
Qwest said it is comfortable with analysts' expectations that it will generate 1999 services revenues of about $3.4 to $3.5
billion.
The Denver-based company also said it was comfortable with forecasts for 1999 earnings before interest, taxes, depreciation
and amortization (EBITDA) of about $750 million and services EBITDA in excess of $650 million. Capital expenditures for the
year will be about $1.4 billion.
In 1998, Qwest posted pro forma revenues of $3.02 billion, and EBITDA of $416.7 million.
Qwest said it was comfortable with estimates for year 2000 services revenues of about $4.5 to $4.6 billion, EBITDA of about
$1.1 billion and capital expenditures of $1.0 to $1.2 billion.
Shares of Qwest gained $3.06 or 5 percent to $62 in heavy Nasdaq trading on Wednesday.
Qwest said the capital expenditures and financial forecasts may be revised to reflect its local connectivity plans that will be
announced by mid-year.
So far, Qwest said it has completed local networks in 10 major cities and is in the process of completing another nine markets
by the end of the year.
Qwest said the network expansion will allow large businesses, such as Microsoft Corp. (Nasdaq:MSFT - news) and Boeing
Co. (NYSE:BA - news) in Seattle, to directly connect to the Qwest network and eliminate the access charges that are incurred
when using the network of the incumbent local phone companies.
Qwest also said that it remains on schedule to complete its previously announced 18,500-mile nationwide network by mid-year.
In addition, Qwest said it will construct an additional 315 miles connecting Memphis to Tulsa, bringing its total U.S. fiber optic
network to 18,815 miles. This new section will be completed by the end of the year.
Qwest provides Internet-based data, voice and image communications services for businesses and consumers. |
