OVERLAND PARK, Kan., April 29 /PRNewswire-FirstCall/ -- EMBARQ (NYSE: EQ) today announced results for the first quarter of 2008, including record earnings and cash flow. The company reported total revenues of $1.57 billion, operating income of $434 million, diluted earnings per share of $1.38 and cash flow before dividends of $286 million.

"Improving efficiency continues to be one of our key focus areas and that was certainly evident in our earnings and cash flow results this quarter," said Tom Gerke, EMBARQ Chief Executive Officer. "Given this strong profitability and the ongoing growth in high-speed Internet and data revenues, we continue to forecast cash flow improvement for full-year 2008."

First Quarter Highlights
-- First quarter operating income, diluted earnings per share and cash flow before dividends reached their highest levels since EMBARQ became a standalone company in mid-2006.
-- Operating income increased 17 percent year-over-year to $434 million.
-- Diluted earnings per share increased 31 percent year-over-year to $1.38.
-- Cash flow before dividends increased 14 percent year-over-year to $286 million.
-- As of April 25th, EMBARQ had repurchased approximately 5.97 million shares at an average share price of $40, which represents 48 percent of the $500 million share repurchase authorization the company announced on January 9, 2008.
-- The company recently introduced EMBARQ(TM) eGo(TM), a next-generation home phone that combines the quality and reliability of traditional voice service with Internet-enabled features and functionality.
-- For business customers, the company recently announced EMBARQ(TM) Business Security Solutions, which includes desktop, network and e-mail security, as well as continuity services such as back-up, recovery and re-routing.

Financial Results

EMBARQ reported consolidated operating revenues of $1.57 billion for the first quarter of 2008, which represents a decrease of 0.4 percent sequentially and 1.1 percent from the prior year period. Despite a 7.3 percent decline in access lines compared to the year ago period, Telecommunications segment revenues declined by 0.5 percent compared to the previous quarter and 1.6 percent year-over-year to $1.46 billion. Growth in high-speed Internet and data revenues partially offset a decline in voice revenue. The Logistics segment reported revenue of $115 million, which is a 1.8 percent sequential improvement and a 5.5 percent increase relative to the prior year period.

The decline in revenue in the first quarter was more than offset by improvements in operating efficiency and wireless dilution, as well as lower severance and spin-off expenses. As a result, consolidated operating income improved 17 percent relative to both the prior quarter and prior year period, reaching $434 million in the first quarter.

    Operating income was impacted by the following items:

    Increase (Decrease)      1Q-08         4Q-07          1Q-07
    (in millions)
    Severance expenses         $0           ($31)          ($14)
    Spin-off related expenses  $0            ($5)           ($9)
    Net wireless dilution    ($14)          ($14)          ($22)

Diluted earnings per share were $1.38 for the quarter, up from $1.05 in the year ago period and $1.23 in the fourth quarter.

Capital Expenditures and Cash Flow

Net capital expenditures during the period were $177 million, a decline of 1.7 percent year-over-year.

EMBARQ reported cash flow before dividends of $286 million in the quarter, an increase of 14 percent compared to the prior year period.

The company paid a dividend of $0.6875 per share in the first quarter, and repurchased approximately 3.35 million common shares at a cost of $135 million. Through April 25, 2008, the company purchased an additional 2.62 million shares at a cost of $104 million.

The company ended the quarter with net debt of $5.6 billion, a sequential reduction of $187 million.

Subscriber Results

EMBARQ reported a decline of 120,000 access lines in the first quarter, ending with 6.19 million access lines. During the quarter, the company added 63,000 high-speed Internet subscribers, bringing the total to 1.34 million. Video net additions totaled 17,000 during the quarter, resulting in the company ending the quarter with 217,000 of its customers subscribing to video services.

2008 Outlook

The company updated its 2008 outlook originally provided on February 7, 2008. Current expectations for the year are as follows:

-- Absolute access lines losses over the remainder of 2008 are expected to be closer to prior year levels than in the first quarter. The company's previous expectation called for access line losses to be flat or slightly higher than 2007 levels throughout 2008.
-- Driven by the decision to transition away from its wireless MVNO, the company lowered its outlook for both wireless revenue and telecommunications segment revenue by $30 million. The updated range for telecommunications revenue is $5.72 to $5.80 billion. The previous range was $5.75 to $5.83 billion.
-- Wireless dilution is expected to be approximately $20 million, which is within the previously provided range.
-- Capital spending is expected to be approximately $780 million, which represents an improvement of $20 million from the previous outlook of approximately $800 million.
-- Cash flow before dividends is expected to be between $960 million and $1.0 billion, a $10 million increase from the previous range of $950 to $990 million.

Conference Call

Today EMBARQ will hold a conference call beginning at 4:30 p.m. EDT. Dial- in numbers for the conference call are (866) 245-2310 (U.S. and Canada) and (816) 650-2838 (International). The code required to access the call is 38553950. Please plan to dial in at least five minutes before the scheduled

start time. A simultaneous audio webcast of the call and a downloadable presentation will be available at http://www.embarq.com/investors.

For those unable to participate live, a replay of the call will be available until May 13, 2008, by dialing (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) as well as at http://www.embarq.com/investors. The accompanying presentation will also be archived and available for download at this website.

Cautionary Statement

This news release contains "forward-looking statements" within the meaning of the securities laws, including statements relating to EMBARQ's outlook or expectations for earnings, revenues, expenses, depreciation and amortization, asset quality, access line declines, cash flow measures, customer growth, wireless dilution, or other future financial or business performance, strategies or expectations. The words "estimate," "plan," "project," "forecast," "expect," "intend," "anticipate," "believe," "seek," "target," "guidance," "outlook" and similar expressions are intended to identify forward-looking statements. These statements reflect management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer retention, pricing, operating costs, technology, and the economic and regulatory environment.

Future performance cannot be ensured. Actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include but are not limited to: the effects of vigorous competition in the markets in which we operate, including access line loss to cable operators and wireless providers; the impact of new, emerging and competing technologies on our business; the effect of changes in the legal and regulatory environment and the impact of compliance with regulatory mandates; potential fluctuations in our financial performance, including revenues, capital expenditures and operating expenses; the impact of any adverse change in the ratings assigned to our debt by ratings agencies on the cost of financing or the ability to raise additional financing if needed; the effects of mergers, consolidations or other unexpected developments in the industries relevant to our operations; the failure to realize expected improvement in operating efficiencies; the costs and business risks with the development of new products and services; the uncertainties related to our investments in networks, systems and other businesses; the uncertainties related to the implementation of our business strategies; the inability of third parties to perform to our requirements under agreements related to our business operations; our ownership of or ability to license technology that may be necessary to expand our business offerings; restrictions in our patent agreement with Sprint Nextel; unexpected adverse results of legal proceedings involving our company; the impact of equipment failure or other breaches of network or information technology security; potential work stoppages; a determination by the IRS that the spin-off from Sprint Nextel should be treated as a taxable transaction; the volatility in the equity market; the possible impact of adverse changes in economic, political or other external factors, including hurricanes and other severe weather, over which we have no control; and other risks referenced in our Annual Report on Form 10-K, including in Part I, Item 1A, "Risk Factors", and from time to time in other filings of ours with the SEC.

Forward-looking statements speak only as of the date they were made, and EMBARQ undertakes no obligation to update or revise any forward-looking statements in light of new information or future events. You should not place undue reliance on any forward-looking statements, which speak only as of the date of this release. EMBARQ is not obligated to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this news release.




    Selected Financial Data (Unaudited) - Current Period Results Compared to
Prior Year


     Consolidated                           1Q-08    1Q-07     Fav/(Unfav)
    Net Operating Revenues
       Voice                               $1,024   $1,084    ($60)   -5.5%
       Data                                   198      189       9     4.8%
       High-speed Internet                    133      116      17    14.7%
       Wireless                                16        9       7    77.8%
       Other services                          62       60       2     3.3%
      Service revenues                      1,433    1,458     (25)   -1.7%
       EMBARQ Logistics                       115      109       6     5.5%
       Other product                           23       22       1     4.5%
      Product revenues                        138      131       7     5.3%
    Total Net Operating Revenues            1,571    1,589     (18)   -1.1%

    Operating Expenses
      Cost of services                        390      417      27     6.5%
      Cost of products                        138      127     (11)   -8.7%
      Selling, general and
       administrative                         358      404      46    11.4%
      Depreciation                            251      270      19     7.0%
    Total Operating Expenses                1,137    1,218      81     6.7%

    Operating Income                         $434     $371     $63    17.0%
    Interest expense                          104      109       5     4.6%
    Other expense (income), net                (1)       0       1       n/a
    Income Before Taxes                      $331     $262     $69    26.3%
    Income tax expense                        119      102     (17)  -16.7%
    Net Income                               $212     $160     $52    32.5%

    Diluted Earnings Per Share              $1.38    $1.05   $0.33    31.4%



    Telecom                                 1Q-08    1Q-07     Fav/(Unfav)
    Net Operating Revenues
       Voice                               $1,024   $1,084   ($60)    -5.5%
       Data                                   198      189      9      4.8%
       High-speed Internet                    133      116     17     14.7%
       Wireless                                16        9      7     77.8%
       Other services                          62       60      2      3.3%
      Service revenues                      1,433    1,458    (25)    -1.7%
      Product revenues                         23       22      1      4.5%
    Total Net Operating Revenues            1,456    1,480    (24)    -1.6%

    Operating Expenses
      Cost of services                        389      417     28      6.7%
      Cost of products                         33       30     (3)   -10.0%
      Selling, general and
       administrative                         348      392     44     11.2%
      Depreciation                            250      267     17      6.4%
    Total Operating Expenses                1,020    1,106     86      7.8%

    Operating Income                         $436     $374    $62     16.6%



    Logistics                               1Q-08    1Q-07     Fav/(Unfav)
    Net Operating Revenues                    115      109      6      5.5%

    Operating Expenses
       Cost of services & products            106       97     (9)    -9.3%
       Selling, general and
        administrative                         10       12      2     16.7%
       Depreciation                             1        3      2     66.7%
    Total Operating Expenses                  117      112     (5)    -4.5%

    Operating Income                          ($2)     ($3)    $1     33.3%


    Selected Financial Data (Unaudited) - Current Period Results Compared to
Prior Quarter

    Consolidated                            1Q-08    4Q-07     Fav/(Unfav)
    Net Operating Revenues
       Voice                               $1,024   $1,032     ($8)   -0.8%
       Data                                   198      193       5     2.6%
       High-speed Internet                    133      128       5     3.9%
       Wireless                                16       16       0     0.0%
       Other services                          62       59       3     5.1%
     Service revenues                       1,433    1,428       5     0.4%
       EMBARQ Logistics                       115      113       2     1.8%
       Other product                           23       36     (13)  -36.1%
     Product revenues                         138      149     (11)   -7.4%
    Total Net Operating Revenues            1,571    1,577      (6)   -0.4%

    Operating Expenses
       Cost of services                       390      399       9     2.3%
       Cost of products                       138      141       3     2.1%
       Selling, general and
        administrative                        358      404      46    11.4%
       Depreciation                           251      263      12     4.6%
    Total Operating Expenses                1,137    1,207      70     5.8%

    Operating Income                         $434     $370     $64    17.3%
    Interest expense                          104      104       0     0.0%
    Other expense (income), net                (1)      (1)      0     0.0%
    Income Before Taxes                      $331     $267     $64    24.0%
    Income tax expense                        119       77     (42)  -54.5%
    Net Income                               $212     $190     $22    11.6%

    Diluted Earnings Per Share              $1.38    $1.23   $0.15    12.2%



    Telecom                                 1Q-08    4Q-07     Fav/(Unfav)
    Net Operating Revenues
       Voice                               $1,024   $1,032    ($8)    -0.8%
       Data                                   198      193      5      2.6%
       High-speed Internet                    133      128      5      3.9%
       Wireless                                16       16      0      0.0%
       Other services                          62       59      3      5.1%
     Service revenues                       1,433    1,428      5      0.4%
     Product revenues                          23       36    (13)   -36.1%
    Total Net Operating Revenues            1,456    1,464     (8)    -0.5%

    Operating Expenses
     Cost of services                         389      397      8      2.0%
     Cost of products                          33       39      6     15.4%
     Selling, general and
      administrative                          348      395     47     11.9%
     Depreciation                             250      262     12      4.6%
    Total Operating Expenses                1,020    1,093     73      6.7%

    Operating Income                         $436     $371    $65     17.5%



    Logistics                               1Q-08    4Q-07     Fav/(Unfav)
    Net Operating Revenues                    115      113      2      1.8%

    Operating Expenses
     Cost of services & products              106      104     (2)    -1.9%
     Selling, general and
      administrative                           10        9     (1)   -11.1%
     Depreciation                               1        1      0      0.0%
    Total Operating Expenses                  117      114     (3)    -2.6%

    Operating Income                          ($2)     ($1)   ($1)  -100.0%

Non-GAAP Definitions & Reconciliations

The following non-GAAP (generally accepted accounting principles) measures should be used in addition to, but not as a substitute for, the information provided in EMBARQ's consolidated financial statements.

Net Debt

Net debt is consolidated debt, including current maturities, less cash and equivalents. EMBARQ believes that net debt provides useful information about its capital structure.

     Reconciliation - Net Debt                  1Q08        4Q07        1Q07

     Current maturities                          $99         $99         $37
     Long-term debt                            5,575       5,779       6,058
     Less: Cash and equivalents                  (52)        (69)        (46)
     Net Debt                                 $5,622      $5,809      $6,049

Net Capital Expenditures

Net capital expenditures are capital expenditures less proceeds from construction reimbursements. EMBARQ believes that net capital expenditures provides useful information about the capital requirements of its operations.

     Reconciliation - Net Capital
      Expenditures                             1Q08        4Q07        1Q07

     Capital expenditures                       179         263         183
     Less: Proceeds from construction
      reimbursements                             (2)         (3)         (3)
     Net Capital Expenditures                  $177        $260        $180

Cash Flow Before Dividends

Cash flow before dividends is net cash provided by operating activities, excluding the effects of changes in assets and liabilities and other non-cash items, less net capital expenditures. EMBARQ believes that cash flow before dividends provides useful information about its capacity to return value to shareholders and reduce debt.

      Reconciliation  - Cash Flow before
       Dividends                               1Q08        4Q07        1Q07

      Net cash provided by operating
       activities                              $593        $397        $480
      Add: Changes in assets and
       liabilities, net of other non-cash
       items                                   (130)         56         (50)
      Net Income excluding depreciation         463         453         430
      Less: Net Capital expenditures           (177)       (260)       (180)
      Cash Flow before Dividends               $286        $193        $250

Because Embarq cannot accurately predict the level of cash flow from operating activities and proceeds from construction reimbursements, Embarq does not provide reconciliations to GAAP of its forward looking measures of cash flow before dividends and net capital expenditures.

Other Financial Measures

Average Revenue per Household is calculated by dividing consumer revenues by average primary consumer access lines. While this measure is not defined under accounting principles generally accepted in the United States, the measure uses a GAAP measure as the basis for the calculation. EMBARQ believes Average Revenue per Household provides useful information concerning the success of its bundling initiatives and performance in attracting and retaining high value customers.

HSI Average Revenue per Subscriber is calculated by dividing high-speed Internet revenues by average high-speed Internet subscribers. While this measure is not defined under accounting principles generally accepted in the United States, the measure uses a GAAP measure as the basis for the calculation. EMBARQ believes HSI Average Revenue per Subscriber provides useful information concerning the appeal of its high-speed Internet pricing plans and performance in attracting and retaining high value customers.

Reclassifications

Universal Service Fund Receipts and Surcharges

In the first quarter of 2008, Embarq reclassified universal service fund surcharges related to long distance and wireless services from consumer and business to wholesale. All universal service fund receipts and surcharges are now reported within the wholesale operating unit. A comparison of operating unit revenues both before and after the changes is provided below. Prior to the fourth quarter 2006, universal service fund surcharges related to wireless and long distance were not material.

    As Currently Reported       4Q-07   3Q-07   2Q-07   1Q-07   4Q-06   3Q-06
    Operating Unit Revenues
       Consumer                  $652    $658    $669    $676    $655    $668
       Business                   389     388     384     383     377     389
       Wholesale                  423     427     429     421     470     424
     Telecommunications segment 1,464   1,473   1,482   1,480   1,502   1,481
     Logistics segment            113     121     123     109     115     125
    Net operating revenues     $1,577  $1,594  $1,605  $1,589  $1,617  $1,606



    As Previously Reported      4Q-07   3Q-07   2Q-07   1Q-07   4Q-06   3Q-06
    Operating Unit Revenues
       Consumer                  $658    $665    $675    $682    $671    $668
       Business                   390     391     385     384     381     389
       Wholesale                  416     417     422     414     450     424
     Telecommunications
      segment                   1,464   1,473   1,482   1,480   1,502   1,481
     Logistics segment            113     121     123     109     115     125
    Net operating revenues     $1,577  $1,594  $1,605  $1,589  $1,617  $1,606


    Switched Access Lines
    Beginning in January 2008, EMBARQ no longer includes in its business
access line counts lines that support its internal administrative and
operational activities. Accordingly, access line counts for all prior periods
have been updated to reflect this change.  A reconciliation of these changes
can be found below.


    Access Lines    1Q-08        4Q-07        3Q-07       2Q-07      1Q-07

    External Access
     Lines          6,192        6,312        6,403       6,533      6,681
    Internal Company
     Lines            161          162          162         158        156
    Access Lines -
     Previous
     Reporting
     Methodology    6,353        6,474        6,565       6,691      6,837


    Access Lines             4Q-06        3Q-06        2Q-06        1Q-06

    External Access Lines    6,754        6,845        6,967        7,119
    Internal Company Lines     154          153          150          149
    Access Lines - Previous
     Reporting Methodology   6,908        6,998        7,117        7,268


About EMBARQ

Embarq Corporation (NYSE: EQ), headquartered in Overland Park, Kansas, offers a complete suite of communications services. The company has approximately 18,000 employees and operates in 18 states. EMBARQ is included in the S&P 500 and is in the Fortune 500(R) list of America's largest corporations.

For consumers, EMBARQ offers an innovative portfolio of services that includes reliable local and long distance home phone service, high-speed Internet, wireless, and satellite TV from DISH Network(R) -- all on one monthly bill.

For businesses, EMBARQ has a comprehensive range of flexible and integrated services designed to help businesses of all sizes be more productive and communicate with their customers. This service portfolio includes local voice and data services, long distance, Business Class High Speed Internet, wireless, satellite TV from DIRECTV(R), enhanced data network services, voice and data communication equipment and managed network services.

    For more information, visit http://www.embarq.com.

                              Embarq Corporation
                    Consolidated Statements of Operations
                  ($ in millions, except per share amounts)
                                 (unaudited)


    Schedule 1                                        Quarter Ended March 31,
                                                      2008              2007

    Net Operating Revenues
       Service revenues                              $1,433            $1,458
       Product revenues                                 138               131
    Total net operating revenue                       1,571             1,589

    Operating Expenses
       Cost of services                                 390               417
       Cost of products                                 138               127
       Selling, general and administrative              358               404
       Depreciation                                     251               270
    Total Operating Expenses                          1,137             1,218

    Operating Income                                    434               371
    Interest expense                                    104               109
    Other (income) expense, net                          (1)                -
    Income Before Income Taxes                          331               262
    Income tax expense                                  119               102
    Net Income                                         $212              $160



    Basic Earnings Per Share                          $1.39             $1.07
    Basic weighted average shares                     152.7             150.2

    Diluted Earnings Per Share                        $1.38             $1.05
    Diluted weighted average shares                   154.1             152.4



                               Embarq Corporation
                      Condensed Consolidated Balance Sheets
                                 ($ in millions)


    Schedule 2                                        March           December
                                                       31,               31,
                                                      2008              2007
                                                   (unaudited)

    Assets
      Cash and equivalents                             $52               $69
      Accounts receivable, net                         579               616
      Inventories, net                                 128               138
      Prepaid expenses and other current
       assets                                          182               163
        Total current assets                           941               986

      Net property, plant and equipment              7,659             7,748
      Prepaid pension asset                            126               108
      Other noncurrent assets                           62                59
        Total noncurrent assets                      7,847             7,915

      Total assets                                  $8,788            $8,901

    Liabilities and stockholders' equity
      Current maturities of long-term debt             $99               $99
      Accounts payable                                 404               387
      Payroll and employee benefits                    140               208
      Accrued income taxes                             153                27
      Accrued operating taxes                           90                97
      Deferred revenue                                 200               202
      Accrued interest                                 136                56
      Other current liabilities                        107               122
        Total current liabilities                    1,329             1,198

      Long-term debt                                 5,575             5,779
      Benefit plan obligations                         320               320
      Deferred income taxes                          1,124             1,130
      Other noncurrent liabilities                     207               210
        Total noncurrent liabilities                 7,226             7,439

    Stockholders' equity
      Common stock                                       2                 2
      Paid-in capital                                 (232)             (231)
      Retained earnings                                728               623
      Accumulated other comprehensive
       income (loss)                                  (130)             (130)
      Treasury stock, at cost                         (135)                -
        Total stockholders' equity                     233               264

    Total liabilities and stockholders'
     equity                                         $8,788            $8,901


                               Embarq Corporation
                 Condensed Consolidated Statements of Cash Flows
                                 ($ in millions)
                                   (unaudited)

    Schedule 3                                        Quarter Ended March 31,
                                                      2008              2007

    Operating Activities

    Net income                                        $212              $160
    Adjustments to reconcile net income
     to net cash provided by operating
     activities:
      Depreciation                                     251               270
      Deferred and noncurrent income taxes             (20)              (36)
      Provision for losses on accounts
       receivable                                       21                17
      Stock-based compensation expense                   9                14
      Net losses (gains) on sales of assets              -                (3)
      Other, net                                        11                11
      Changes in assets and liabilities:
           Accounts receivable                          16                14
           Inventories and other current
            assets                                     (15)              (28)
           Accounts payable and other
            current liabilities                        133                75
           Noncurrent assets and
            liabilities, net                           (25)              (14)
    Net cash provided by operating
     activities                                        593               480

    Investing Activities
      Net capital expenditures                        (177)             (180)
      Proceeds from sales of assets                      2                17
    Net cash used by investing activities             (175)             (163)

    Financing Activities
      Changes in debt, net                            (205)             (360)
      Dividends paid to stockholders                  (107)               (4)
      Repurchase of common stock                      (115)                -
      Common stock issued                                4                35
      Other, net                                       (12)                5
    Net cash used by financing activities             (435)             (324)

    Change in Cash and Equivalents                     (17)               (7)

    Cash and Equivalents at Beginning of
     Period                                             69                53

    Cash and Equivalents at End of Period              $52               $46



                               Embarq Corporation
                              Operating Statistics
           (Revenues in millions; lines and subscribers in thousands)
                                   (unaudited)

    Schedule 4
                              1Q-08    2007   4Q-07   3Q-07   2Q-07   1Q-07
    Service and Product
     Revenues
      Voice                   $1,024  $4,238  $1,032  $1,051  $1,071  $1,084
      Data                       198     765     193     195     188     189
      High-speed Internet        133     489     128     124     121     116
      Wireless                    16      51      16      15      11       9
      Other                       62     243      59      61      63      60
    Service revenues           1,433   5,786   1,428   1,446   1,454   1,458
      Logistics                  115     466     113     121     123     109
      Other                       23     113      36      27      28      22
      Product revenues           138     579     149     148     151     131
    Net operating revenues    $1,571  $6,365  $1,577  $1,594  $1,605  $1,589

    Operating Unit Revenues
      Consumer                  $656  $2,655    $652    $658    $669    $676
      Business                   381   1,544     389     388     384     383
      Wholesale                  419   1,700     423     427     429     421
     Telecommunications
      segment                  1,456   5,899   1,464   1,473   1,482   1,480
     Logistics segment           115     466     113     121     123     109
    Net operating revenues    $1,571  $6,365  $1,577  $1,594  $1,605  $1,589

    Access Lines (1)
      Consumer                 4,172           4,272   4,345   4,461   4,588
      Business                 1,861           1,876   1,887   1,896   1,909
      Wholesale                  159             164     171     176     184
    Total                      6,192           6,312   6,403   6,533   6,681

    Average Revenue per
     Household (HH)
      Consumer revenue          $656            $652    $658    $669    $676
      Average households       3,926           3,997   4,076   4,180   4,261
    Monthly revenue per
     average HH               $55.70          $54.37  $53.81  $53.35  $52.88

    High-speed Internet Lines
      Consumer                 1,132           1,074   1,017     963     916
      Business                   167             164     160     154     149
      Wholesale                   41              39      39      39      39
    Total                      1,340           1,277   1,216   1,156   1,104

    HSI Average Revenue per
     Subscriber
      High-speed Internet
       revenue                  $133            $128    $124    $121    $116
      Average HSI subscribers  1,309           1,247   1,186   1,130   1,061
    Monthly revenue per
     average subscriber       $33.87          $34.22  $34.85  $35.69  $36.44

    Wireless Subscribers
      Consumer                   101             101      98      81      65
      Business                    11              11      10       8       6
    Total                        112             112     108      89      71

    Entertainment Subscribers    217             200     190     178     170

   (1)  Beginning in January 2008, we no longer include in our switched
        access line counts those lines that support our company's internal
        administrative and operational activities. Accordingly, access line
        counts for all prior periods have been updated to reflect this
        change.

SOURCE EMBARQ
 

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