Embarq brings in higher profit, lower revenue

Independent telco Embarq reported second quarter earnings Tuesday after market close, posting a net income of $206 million, or $1.38 per share, up 17 percent from the $176 million it earned for the same quarter last year. Revenue actually was down 3.5 percent to about $1.55 billion, but declining costs helped the company toward the improved profit mark. Some of the cost decline came from Embarq ending its sales effort for wireless services within the last few months. A 7.8 percent loss in access lines--about 170,000 lines--also had an impact on revenue.

It is still unclear what Embarq plans to do with its existing wireless customer base. The company has been observed as a candidate for consolidation in recent months.

For more:
- see this Associated Press report [1] at Forbes

Related articles:
Embarq has been seen as ready to make some M&A moves. Embarq report [2]
Embarq ended its wireless partnership with Sprint in May. Embarq report [3]