MCI WorldCom has reported that its profit and revenue jumped in the third quarter ended Sept. 30, as a result of a continuing shift to data, Internet and international services, as well as cost savings from the merger of MCI and WorldCom.
MCI WorldCom reported net income, excluding Embratel and after goodwill amortisation, of US$1.1 billion, or 55 cents per share, up 199 percent from results a year earlier of $359 million, or 19 cents per share, excluding Embratel and MCI merger costs, the company said today in a statement.
The results matched the consensus earnings estimate of 25 analysts polled by First Call/Thomson Financial.
Earnings before goodwill amortisation, or cash earnings, were $1.4 billion or 71 cents per share.
Separately, MCI WorldCom reported earnings for Embratel Participações SA, the Brazilian carrier.
Revenues, excluding Embratel, reached $8.5 billion, an increase of 11 percent over last year's third quarter revenues of $7.7 billion. Revenues were impacted by $29 million in service credits paid to customers for service interruptions on the frame relay network in the quarter.
More than 75% of the revenue growth, or $915 million, is coming from nontraditional voice services including data, Internet and international, MCI WorldCom said. These faster-growing services make up 39 percent of the communications services revenues. Data revenues grew 28 percent year on year, Internet revenues grew 57 percent and international revenues grew 54 percent. MCI WorldCom has operations in 65 countries.
Although voice traffic is increasingly a smaller amount of network volume, voice minutes per quarter grew 12 percent year on year.
MCI WorldCom and Sprint Corp. announced earlier this month that they will merge in a deal worth $129 billion. If the merger is approved, it will close in the second half of 2000.
MCI WorldCom, in Jackson, Mississippi, can be reached at +1-601-360-8600 or at http://www.wcom.com.