Dear XO Business Partner,
In today’s economic environment, you may be wondering about the strength of your telecommunications provider. This is a natural question to ask at a time when the macroeconomic news has been poor and when so many telecommunications companies are saddled with heavy debt burdens, diminished cash resources and challenges to grow revenue and make investments to better serve you and your customers during an adverse economic environment.
While many telecommunications companies are facing these challenges, XO Communications’ financial performance in 2008 was strong. In 2008, we delivered solid annual revenue growth and significant EBITDA gains, due largely to our strategic focus on data and IP services – services that are helping our partners offer solutions that help businesses improve productivity and operate more efficiently. In 2008, revenue from data and IP services grew by 26 percent and our total annual revenue grew by more than 3 percent compared to last year.
As we look across the competitive landscape, it's clear that many other companies in our industry that require access to capital markets in order to make investments to support the growing needs of your customers may be hindered by the current credit crisis. In contrast, XO has already invested significantly in our network to support the growing bandwidth demands of businesses and to deliver new, advanced IP and networking services to help your customers cost-effectively power their businesses. Over the past two years, XO has invested more than $415 million in these capabilities.
The current macroeconomic environment has also had an impact on companies’ stock prices across the board, including our own. Because our stock is traded over-the-counter and not on a major stock exchange, very few investment firms can hold our stock. In addition, our stock is thinly traded with a majority of the outstanding shares held by our Chairman, Mr. Carl Icahn. These factors contribute to our stock’s volatility. While numerous factors impact a company’s stock price, we do not believe that our current stock price is a proxy for the financial and operational performance of our business or our ability to successfully grow our business. Our financial position is strong.
At the end of the day, our business is about providing the highest quality service possible to our partners and customers. And while other telecommunications companies may be distracted because they are focused on getting their own house in order, we are focused on our partners and customers.
If you have any questions or if there is a communications issue you or one of your customers is currently facing that we can help you overcome, do not hesitate to let us know.
Sincerely,
Dan Wagner
President, Business Services
XO Communications
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