By Mark Graham, 27 July 2001 11:57
NEWS Telco WorldCom has blamed recent restructuring costs for a decline in second quarter earnings. WorldCom released separate results for WorldCom Group, its data and internet business, and MCI Group, the wholesale long distance unit it spun off last month. Excluding one-off charges, WorldCom Group's profits fell to $574m from $771m a year ago. However, turnover rose 12 per cent to $5.4bn, helped by a 22 per cent increase in the sales of internet and data services. On the back of this rise a company statement maintained WorldCom Group is on target for revenue growth of between 12 and 15 per cent for the full year. Meanwhile MCI Group recorded a net loss of $29m compared with a profit of $541m for the same quarter last year on turnover of $3.5bn - down from $4.2bn. WorldCom shares closed yesterday up $1.19 at $14.54 and MCI closed up 39 cents at $15.45.
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