MCI posts net for 3rd period; stock drops $3

Article Abstract:

MCI Communications Corp nets an income of $140 million for the 3rd qtr, compared with a $168 million loss in the same quarter the year previous. With the end of the quarter, revenue for the long-distance telephone company increased 2.4 percent to $2.15 billion. Despite the increase in profits and turnaround, MCI's decreased profit margins and competition from rivals AT&T and US Sprint Communications Co drove down MCI stock by $3. It closed at $27.125 in very heavy, over-the-counter trading. MCI recruited 3 million new customers in the quarter with its Friends and Family discount calling program, but the program decreased profit margins from 13.2 to 12.8 percent. Excluding $550 million in charges in 1990 associated with accelerated network digitization, MCI's operating earnings decreased 18 percent, from $334 to $274 million.

Telecommunications services industry, Telecommunications industry, Telephone companies, Profits, Telephone Company, Third Quarter, Profit, Long-Distance Telephone Service

---

MCI posts gains, but rate of rise slows from 1993's

Article Abstract:

MCI earns $151 million, or 22 cents per share, in 4th qtr 1994, on revenue of $3.4 billion. Communications traffic was 8.7 percent higher than in 4th qtr 1993. MCI's growth in profit, revenue and traffic has slowed since the company's torrid 1993 period, but still posts a respectable 22 percent gain in earnings, exclusive of one-time charges, and a 12 percent gain in revenue. The industry is only growing by 6 percent. An aggressive AT and T took much consumer business from MCI in 1994. MCI's business traffic grew by an impressive 15 percent for the year and now represents 55 percent of all MCI traffic. MCI is counterattacking with a refurbished version of its Friends & Family promotion, but CFO Douglas Maine only foresees 8.7 percent year-to-year revenue growth in the consumer sector in 1st qtr 1995.

Wired Telecommunications Carriers, Long Distance Telephone Svc

---

Similar abstracts:

• Abstracts: ComputerLand posts $13.9 million loss for 3rd period, citing control problems. Businessland's top marketing, sales executives leave
• Abstracts: IBM introduces line of workstations; industry analysts impressed by prices
• Abstracts: Complementarity of prior accounting information: the case of stock dividend announcements. Economic sufficiency and statistical sufficiency in the aggregation of accounting signals
• Abstracts: Lotus Development will offer discounts on software to competitors' customers. Lotus will unveil spreadsheet package, dubbed 1-2-3/G, as soon as next week
• Abstracts: Digital posts first profit in over a year, citing strength overseas, Alpha sales. Wang Labs posts $146.6 million loss for third quarter

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.