At a meeting with analysts in Denver, Qwest Communications cut its revenue forecasts for the current quarter and all of 2002. The telco also said that it expected to reduce its workforce by an additional 7,000 jobs, from 62,000 at the end of 2001 to 55,000 employees by mid-2002.
For Q4 2001, Qwest said it expected reported revenue of approximately $4.8 billion EBITDA of approximately $1.7 billion. For the full year 2001, the company expects reported revenue of approximately $19.8 billion and EBITDA of approximately $7.45 billion.
For 2002, Qwest expects reported revenue in the range of $19.4 to $19.8 billion and EBITDA in the range of $7.1 to $7.3 billion. This represents a reduction of 0 to 2% from 2001 expected revenue, and 2 to 5% from 2001 expected EBITDA in each case on a reported basis.
At the Denver meeting, Qwest’s chief executive, Joseph Nacchio said the new guidance reflected the continued economic softness both nationally and within the 14 Western states in which Qwest provides local communications services, as well as a decrease in demand for wholesale broadband capacity services. He also suggested that the eventual upturn in the telecoms industry would be weaker than the company had previously anticipated with demand in late 2002 and 2003 likely to be modest.