Qwest Communications International Inc. reported Tuesday its first-quarter profit fell 35 percent on sharply higher tax expenses.The Denver-based telecommunications company earned $157 million, or 9 cents per share, in the three months that ended March 31, down from $240 million, or 12 cents per share, in the year-ago quarter. Overall revenue fell 1.5 percent to $3.40 billion from $3.45 billion in 2007 which the company said was due to increased competition in the long-distance business and industry consolidation.

Its tax expenses rose to $99 million from $2 million a year earlier as Qwest began recording income tax expense at normal effective rates.

Analysts surveyed by Thomson Financial estimated, on average, profit of 10 cents per share on sales of $3.41 billion.



Revenue for data, Internet and video products increased 9 percent and represented nearly 40 percent of overall sales, Chief Executive Officer Ed Mueller told analysts during a conference call.

"These growth products are an increasingly significant portion of our business and will help drive our growth as the industry shifts from legacy to next-generation products and services," he said.

The company's fiber optic network provides telephone, video and broadband Internet services around the world. Qwest is the primary telephone service provider in 14 mostly Western states.

Its shares fell 12 cents, or 2.2 percent, to $5.24 in morning trading.

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On the Net: http://www.qwest.com

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