Global Crossing Posts 3rd-Quarter Loss Per Share of $0.04
Global Crossing Posts 3rd-Quarter Loss Per Share of $0.04
Hamilton, Bermuda, Oct. 27 (Bloomberg) -- Global Crossing Ltd., which recently bought U.S. long-distance phone company Frontier Corp., said it posted a better-than-expected third- quarter loss per share as it invested in acquisitions and its network.
The company, which is building a worldwide fiber-optic network, said the loss per share was 4 cents when its Global Marine Systems and Frontier Corp. acquisitions were included for the full quarter. It had a profit of 2 cents a share in the same period last year. Global Crossing was expected to lose 10 cents a share, based on a survey of five analysts by First Call Corp.
Global Crossing, which sells capacity on its network to other phone companies and large businesses for Internet and data services, is benefiting from strong demand in Europe to connect to U.S. Internet sites. It's making acquisitions to better meet that demand and investing to build its network. ``With the conclusion of the merger with Frontier last month, we can now begin to realize the benefits of the global telecommunications powerhouse we have created by combining these two companies,' Chief Executive Officer Bob Annunziata said in a statement.
Earnings before interest, taxes, depreciation and amortization, a measure of cash flow for companies with heavy debt, rose 16 percent to $290 million.
The company said it will take a $15 million charge for retirement of debt in the third quarter. It saw a $210 million gain in the third quarter from U.S. West fees.
Revenue rose to $929 billion in the third quarter when the acquisitions of Global Marine Systems and Frontier Corp. were included from the beginning of the quarter, up 8 percent from a year earlier.
Since hitting a three-month low of 20 5/16 on September 7, Global Crossing shares are up about 70 percent, partly on speculation that BellSouth Corp. or Deutsche Telekom AG may try to buy the company.
BellSouth, which provides local phone services in nine southeastern U.S. states, was outbid for long-distance phone company Sprint Corp. by MCI WorldCom Inc.'s $129 billion offer on Monday. Deutsche Telekom has been looking to buy companies since losing a $93.6 billion bid for Telecom Italia SpA in May.
Last month, Global Crossing completed its $9.3 billion acquisition of the No. 5 U.S. long-distance phone company, Frontier, adding a national U.S. fiber-optic network to the undersea cables it's laying.
Global Crossing's progress in building its international network will help it compete against the combined MCI WorldCom- Sprint, which have about $50 billion in annual revenue.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.
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