Without frenzy, Sprint outdoes its competitors
Article Abstract:
A low-key and stable approach has enabled Sprint to outperform its telecommunications rivals in 1997 stock results. Sprint's stock has surged 40.1% since Jan 1, 1997, compared to AT%T's 18.9% gain and MCI's 15.4% increase. Much of Sprint's success can be attributed to a range of services that perhaps lead the industry, as large telecoms are striving to combine all services. The No. 3 American long-distance company also offers local telephone service, Internet access, wireless communications and a respectable international presence. Many average investors fail to realize that Sprint also ranks seventh among US local telephone companies, serving approximately 7.4 million lines in 19 states. Local operations have produced 36.2% of Sprint's 1997 revenue to date, plus 58.9% of operating income. Long distance business has generated only an 11.8% operating margin through the 3rd qtr 1997, compared to 27.1% for local operations.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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GTE expects $174 million quarter loss: $2 billion to $3 billion in assets to be sold off
Article Abstract:
GTE said it would assume an after-tax charge of $802 million, or 83 cents a share, for the 1st qtr 1998 as part of a restructuring to compete in the volatile telecommunications industry. The local telephone company likely will report a quarterly loss of about $174 million, or 18 cents a share in its Apr 14, 1998, announcement of financial results. GTE also said it had formally withdrawn its $28 billion cash offer to acquire long-distance provider MCI, whose shareholders approved a $37 billion bid from Worldcom in Mar 1998. An obscure Canadian accounting change, job cuts and aborted experiments in advanced video services would account for the charge, according to GTE. The company said staff reductions would reduce its annual core operations costs by $500 million by the spring of 2000, and sales of underperforming operations would provide $2 billion to $3 billion.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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