Qwest Corporation Reports Revenue Decline but Significant Net Income Recovery for Fiscal Year 2024

Qwest Corporation, a wholly owned subsidiary of Lumen Technologies, Inc., reported a decline in operating revenue for the fiscal year ending December 31, 2024, totaling $5.5 billion, down from $5.9 billion in 2023. The company experienced a net income of $1.5 billion, a significant recovery from a net loss of $831 million the previous year, which was impacted by a non-cash goodwill impairment charge of $2.4 billion. Operating expenses also decreased sharply to $3.5 billion from $6.1 billion in 2023, primarily due to the absence of the prior year's impairment charge and reductions in various operational costs.

The company noted several strategic developments during the year, including a focus on enhancing its Quantum Fiber broadband services and a commitment to modernizing its network infrastructure. Qwest served approximately 1.6 million broadband subscribers as of December 31, 2024, although it reported declines in customer counts across several service categories, including a 16% drop in Other Broadband and a 20% decrease in Fiber Broadband. The company attributed these declines to increased competition and customer migrations to newer service offerings.

Operationally, Qwest's total assets increased to $17.4 billion from $16.3 billion in 2023, while total long-term debt decreased to $1.9 billion from $2.2 billion. The company’s employee headcount stood at approximately 10,500, with 42% represented by labor unions. Qwest's ongoing transformation efforts are aimed at addressing competitive pressures and improving service delivery, particularly in light of evolving customer demands for high-speed data services.

Looking ahead, Qwest expressed cautious optimism regarding its financial outlook, emphasizing the need to adapt to market conditions and customer preferences. The company plans to continue investing in its network and service offerings while managing its debt levels and operational costs. However, it acknowledged the potential for ongoing challenges, including inflationary pressures and the need to navigate a competitive landscape that includes both traditional telecommunications providers and emerging technologies.