Humbled MCI losing its edge as rate-cutter

Article Abstract:

Long-distance carrier MCI is no longer the least expensive service and is expected to report no earnings growth or a decline in earnings in its fourth quarter. The company's revenue and long-distance volume has decreased since Jan 1994 and its market share is under continuing attack, especially by AT&T. Market leader AT&T has gained more than one million new customers, many at the expense of MCI, as it tries to continue its market dominance. Some industry insiders report that some of MCI's problems stem from its inability to maintain a corporate strategy because the company has changed its strategy four times within a year. MCI does have some bright spots in its business such as the revenue and profit it earns from business clients. During 1994 business traffic increased 15 percent, twice the industry rate, and data traffic increased 34 percent.

Wired Telecommunications Carriers, Long Distance Telephone Svc, Competition

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MCI earnings increased 11% in fourth quarter

Article Abstract:

MCI Communications Inc reports that 4th qtr 1992 net income was $160 million, or 60 cents per share, up 11 percent from net income of $144 million, or 52 cents per share, for 4th qtr 1991. Revenue advanced from $2.44 billion to $2.76 billion. MCI's 1992 net income was $609 million, or $2.21 per share, up 11 percent from $551 million, or $2.01 per share, in 1991. Year-to-year revenue climbed 11 percent, from $9.49 billion to $10.56 billion. The 4th qtr 1992 earnings include a $56 million payment from the Stentor long-distance consortium and a $47 million charge for restructuring. The results for 1992 are in line with most analysts' predictions. MCI stock fell $1.125 to $40.75 on Jan 27, 1993, the day the 1992 figures were released.

Increase, Long-Distance Telephone Service, Annual Report, Fourth Quarter

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