Frontier stock off 21% on revenue forecast; long-distance reseller is losing bulk of key customer's business
Article Abstract:
Frontier's announcement on Dec 17, 1996 that it had lost most of its business from Excel Communications resulted in a 21% drop in Frontier's stock, which declined to $20.75 on volume exceeding 14 million shares. Excel, which buys and resells long-distance capacity, has been shifting its business to MCI Communications and Worldcom for the last year, reducing its revenues to Frontier from $231 million in 1st qtr 1996 to approximately $76 million in 4th qtr 1996. Frontier's financial problems have been exacerbated by expenses involved in the company's efforts to market local- and long-distance telephone service bundles in New York City. It also has not realized expected revenue from its dial-around or its prepaid calling card business. Frontier's 4th qtr 1996 revenue will be $400 million, a decline of 20% in a single quarter.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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AT&T and Rogers in Canadian phone deal
Article Abstract:
AT&T and Canadian cellular telephone and cable organization Rogers Communications Inc have an option to purchase Canadian Pacific Ltd's 48 percent share of Canadian long-distance carrier Unitel Communications Holdings Inc. As of Jan 1995, Unitel was losing approximately $1 million a day. If AT&T and Rogers excercise their options, Canadian Pacific would receive $140 million. AT&T, Rogers and Canadian Pacific also gave Unitel $70 million in loans as a condition for bankers to extend the due date of a $455 million loan to Apr 28, 1995, the same day AT&T and Rogers' option expires. If the options are exercised, AT&T would own 33 percent of Unitel, while Rogers would own 67 percent. The companies are requiring the Canadian government stimulate competition in the telephone market before they plan to excercise their options.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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MCI's 4th-quarter revenue advanced 9%
Article Abstract:
MCI earns $151 million, or 22 cents per share, in 4th qtr 1994, on revenue of $3.4 billion, a 9 percent increase for the same quarter in 1993. Discounting one-time charges and an increase in the number of MCI shares, per-share earnings advanced only 2.9 percent, from 34 cents to 35 cents. The slowed growth confirms Wall Street's inkling that an aggressive AT and T took much consumer business from MCI in 1994. MCI is counterattacking with a 'New Friends and Family' promotion, but analysts say that it will take several months before the success of the new promotion is determined. Communications traffic was 8 percent higher than in 4th qtr 1993, a falloff from the 16 percent annualized growth rate reported in 1st qtr 1994. Still, MCI's increase outstripped the long-distance service as a whole.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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