Tel-Save Holdings to remain independent
Reuters Story - August 14, 1998 18:48
NEW HOPE, Pa., Aug 14 (Reuters) - Tel-Save Holdings Inc.,
which had been looking for a buyer since February, said Friday
it would remain independent.
The company also said it would begin its previously
authorized plan to repurchase up to $300 million in common
stock from time to time.
Tel-Save, a small telecommunications company, said it
benefited from its marketing alliance with Internet service
provider America Online Inc. .
"If there is one thing for sure, it's that AOL members buy
and use long-distance services. AOL revenues came in at over
$43 million this quarter," Dan Borislow, Tel-Save chairman and
chief executive, said in a statement announcing second-quarter
results.
Tel-Save said it expected to spend up to $125 million more
on marketing this year than previously expected.
"Although marketing costs, which are expensed as incurred,
will negatively impact our third quarter earnings, the company
expects to return to profitability starting in the fourth
quarter," Borislow said.
Tel-Save said it would have the opportunity to earn over
$1.50 per share in 1999.
Tel-Save reported a second-quarter loss of $96.15 million,
or $1.49 per diluted share, compared with $5.87 million, or
$0.09, in the same period a year earlier. |
