MCI's earnings increased by 9% in 2nd quarter; revenue and traffic posted strong gains, and firm sees growth continuing
Article Abstract:
MCI Communications Corp reports a 9 percent increase in its second quarter net income, from $137 million in 1991 to $149 million in 1992. Revenue increased by 11 percent, to $2.61 billion from $2.35 billion. Despite the rosy picture, the company's stock went down by 37.5 cents, closing on Thursday, Jul 23, 1992 at $32.50. Analysts attribute MCI's revenue growth to its successful 'Friends and Family' discount plan and to its multiyear corporate contracts. The consumer discount plan buoyed the company's call traffic by 14.6 percent for the 2nd qtr 1992, or more than double the industry rate. MCI's marketing campaigns are costing the company $1.35 billion, or an increase in administrative expenses by 10 percent, however. Stock investors are apparently disappointed that MCI's profit growth does not match volume increases.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
No vacancies; the wireless revolution faces a major obstacle: there's no room on the frequency spectrum
Article Abstract:
Pocket telephones and wireless data transmission devices have no room on the frequency spectrum. Everyday devices, including microwave ovens, garage-door openers, home cordless telephones and baby monitors are some of the things that are crowding the airwaves. The global telecommunications industry is lobbying to open up some spaces for wireless telephone networks and is working with the US Federal Communications Commission (FCC) to take portions of frequency bands away from some services. There is not much room to negotiate and space on the frequency spectrum for wireless transmission of data and voice is very small.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Intel earnings increased 17% in third period. Advanced Micro posts profit for period, year; computer-chip sales surge paces results, vindicates development of clone
- Abstracts: LSI Logic's cost-cutting efforts produce a payoff: first profit in three quarters follows strong chip sales, leaner strategy
- Abstracts: Changing authority patterns: a cultural perspective. Loosely coupled systems: a reconceptualization. A review and reconceptualization of organizational commitment
- Abstracts: Xerox to unveil color copier laser printers. Xerox to post lower profit for this year. Xerox to take pretax charge of $400 million; firm to write off funds in VMS Realty Partners; analysts praise the move
- Abstracts: AT&T seeks pocket phone test clearance. Sprint may cut $4.2 billion price for 20% stake; as stock slumps under $30, European phone firms push for better terms