MCI surpasses expectations on earnings

Article Abstract:

MCI WorldCom Inc.'s first-quarter earnings exceeded analysts' expectations fueld by an increase in Internet, data and telephone traffic. The company had net income of $709 million, compared with pro forma earnings of $191 million in year-earlier period. Excluding its interest in Brazil's Embratel Participacoes SA and a one-time gain, MCI WorldCom had operating earnings of $688 million, compared with pro forma results of $169 million of the year-earlier period. However, the company's shares have dropped over 10% in value since April 12, amid uncertainty about whether it will make a bid to acquire Nextel Communications Inc. The results seem to indicate the success of WorldCom's integration of MCI Communications Corp., completed last September. The company has made progress in cutting costs since the integration. Bernard J. Ebbers, MCI WorldCom's president and chief executive, would not comment on the negotiations with Nextel, but reassured analysts that he is not about to make any impulsive decisions.

Telecommunications, Telephone Communication, Nextel Communications Inc., NXTL

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MCI WorldCom, Sprint ponder merger; the talks have picked up, though deal still faces significant obstacles

Article Abstract:

The nation's no.2 and no.3 long-distance telephone companies, MCIWorldCom Inc. and Sprint Corp. are discussing a possible merger. The proposal, valued in billions of dollars' worth of stock, would link MCIWorldCom, a U.S. long distance carrier, with Sprint, a wireless presence in the U.S. Though MCIWorldCom's acquisition would give it about a 30% share of the consumer long-distance market, regulatory problems shouldn't be a serious issue according to some industry analysts, given AT&T's 60% market share and the hundreds of other companies already in the market. Analysts point out these talks are preliminary, given the recent merger discussions that broke off between MCI WorldCom and Nextel Communications Inc. and Deutsche Telekom's waning interest in upping its 10% holdings in Sprint or buying the company entirely.

Internet service provider, Esrey, William T.

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WorldCom sees lower growth for rest of year

Article Abstract:

WorldCom announces that revenue growth for 2000 will probably fall 14% even though 2nd quarter earnings rose 49%, as expected. WorldCom also plans to exit the frenzied long-distance phone market. America Online disappointed with between a $30 to $40 million shortfall, as customers logged 3.5% fewer hours online. Chairman Bernard J. Ebbers might consider spinning off or selling units. WorldCom's shares dropped 12% to $39 after the announcement.

Wired Telecommunications Carriers, Telephone Communications, Telephone communications, exc. radio, Statistical Data Included, America Online Inc., AOL, Telephone services, Long distance telephone services, Long-distance telephone service

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